According to a report in the Financial Times, Pacific Crossing is about to be gobbled up. The company, which runs the PC-1 cable between California and Japan, was once a part of the empire of glbc back in the bubble days. After the crash, Pivotal Private Equity was poised to take control of the company out of BK court. But that deal fell apart and then the assets spent an inordinate amount of time in BK court due to disputes over ownership of landing stations and compensation from its prior owners and such - it looked like they might stay in limbo for eternity. But emerge they did, and after a few years on their own it now appears that PC-1 will now find a real home.
According to the FT article, both NTT Communications (NYSE:NTT, news, filings) and Pacnet have tendered bids in the neighborhood of $80-90M. Those two are the most obvious buyers for the assets. The two Indian carriers Tata Communications and Reliance Globalcom already have major transpacific cables at their disposal, and the major US carriers have invested in TPE and Unity or are otherwise unwilling to to lay out cash for such an asset. I suppose Global Crossing could have bid to bring the cable it back under their wing, but they don't seem to need it right now and have better places to put their cash.
My money is on NTT, they simply have the motive and means to outbid anyone else, but Pacnet has been aggressive and their backers have money, so who knows.
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