According to a Reuters report, Indian telecommunications giant Reliance Communications is apparently having little luck shopping its Globalcom division since supposedly putting it on the market in mid December. The deadline for bids has already been extended, and there just haven’t been many potential buyers even showing up to kick the tires. Of course, a $3B price tag does tend to limit the field substantially to begin with. Reliance, for its part, says it is not trying to sell these assets – but that is a claim that nobody seems to actually believe.
The few buyers that have shown any interest are said to include Japanese giant NTT and glbc with further backing from Singapore – which certainly make the most sense relative to the field. However, as I said before I think this whole thing is a trial balloon. Sure, they’ll sell it if they get the price they are asking for, but really they’re just trying to gauge what the asset is worth in what form and to whom, so that they can maybe sell it later when the time is ripe.
When, at what price, in what form and to whom might that be? Hmmm, sounds like a game of Clue! I’ll go with a deal in late 2010 at a total of $2.0B in three pieces to NTT, Global Crossing, and Abovenet. Anybody with a competing wild-assed guess prediction, stop jeering and leave a comment!
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