Global Crossing, the company which provides one-third of the Republic's international telecoms capacity, may choose a winning bidder to run all or part of its network at an auction later today.
The firm, which filed for bankruptcy protection in January and faces two federal investigations of its accounting, will hold the auction at the New York offices of Weil, Gotshal & Manges.
The auction, which was twice delayed to allow creditors more time to consider investment proposals from private equity groups and telecoms firms, could lead to an announcement later today.
But sources close to the bankruptcy believe it is possible that no decision will be taken until next week to coincide with an auction hearing at the United States Bankruptcy Court for the Southern District of New York on August 7th.
Global Crossing filed for Chapter 11 bankruptcy protection in January, buckling under $12.4 billion (€12.6 billion) in debt and a glut of high-speed network capacity. The company also faces investigations into its accounting practices by the US Justice Department and the Securities and Exchange Commission.
The firm forms the linchpin of the State's plan to become an e-commerce hub and the Government signed a €126 million deal for the supply of global telecoms capacity in 1999.
Following Global Crossing's bankruptcy application in January, the State appointed two law firms to monitor the implications for the deal. It is hoped any new investor or owner of the firm would continue to supply international telecoms capacity to the State.
Sources told news agency Reuters that there were at least four serious bids for all or some of Global Crossing's telecoms assets, which include a high-speed fibre optic network connecting more than 200 cities.
Buyout firms Gores Technology and Platinum Equity have submitted a joint bid worth about $1.2 billion for a majority stake in Global Crossing.
Rival telecoms firm Level 3 Communications, which last month received a $500 million investment backed by billionaire investor Mr Warren Buffett, has submitted a bid for a portion of Global Crossing's business.
Moneyline Telerate, which is backed by One Equity Partners, the venture capital unit of Bank One, has also submitted an offer, a source said this week.
In addition, a source told Reuters that Hutchison Whampoa of Hong Kong - which earlier submitted a bid with state-owned Singapore Technologies Telemedia Pte - was also back in the running, having earlier failed to come to an agreement with Global Crossing on a price. The two Asian companies were the first group to submit an offer, worth $750 million, for 79 per cent of Global Crossing. - (Additional reporting Reuters)
