Carlyle may lead bid for Asia Global Crossing Ltd

Carlyle Group and other investors may bid at least US$250 million for Asia Global Crossing Ltd, which operates undersea communications cables in Asia, the Asian Wall Street Journal reported, citing unidentified officials.

Carlyle, a US private equity firm with more than US$12.5 billion of assets, may team up with Emerging Markets Partnership, Citic Pacific Ltd and Softbank Asia Infrastructure Fund to try to buy Asia Global Crossing.

"We are talking to several people, but I can't say if it's any of those folks," said Madelyn Smith, a spokeswoman for Asia Global Crossing. Christopher Ullman, a Carlyle spokesman, declined to comment.

Asia Global Crossing is 58 percent-owned by Global Crossing Ltd, which filed for bankruptcy in January with US$12.4 billion in debt. Asia Global Crossing hired Lazard LLC to raise funds after sales slumped and Global Crossing refused in December to lend it US$400 million.

Both companies missed an April 1 deadline for submitting a required report on sales, profit and other information to the US Securities and Exchange Commission. The companies cited investigations into the parent company's accounting.

Hutchison Whampoa Ltd (和記黃浦), controlled by billionaire Li Ka-shing (李嘉誠), and state-owned Singapore Technologies Telemedia Ltd own stakes in Asia Global Crossing and have offered to buy 79 percent of the parent for US$750 million.

Microsoft Corp, the biggest software company, and Softbank Corp, Japan's biggest Internet investor, each own 14.9 percent of Asia Global Crossing.

"We don't comment on speculation and rumors about potential investments," said Microsoft spokesman Mark Thomas.

Softbank Asia Infrastructure Fund officials couldn't be reached for comment.

Asia Global Crossing said in statement that it has reached agreement with KDDI Corp and NEC Corp on easing payment schedules on loans.

Asia Global Crossing will pay the cable unit of KDDI US$45 million this year instead of the US$95 million it was due to pay.

NEC, Japan's biggest personal computer maker, was owed US$240 million this year by Asia Global Crossing.