Asia Global Crossing Ltd, 59 percent owned by insolvent Global Crossing Ltd, said 19 companies may invest in the fiber optic cable operator, a step that would help the company stay afloat.
Asia Global Crossing, which said two months ago it was seeking investors to raise cash and stay in business, signed confidentiality agreements with the 19 firms, said spokeswoman Madelyn Smith. She wouldn't disclose their names.
"There are lots of different options being considered," including the sale of the entire company, Smith said. The potential suitors were earlier reported by the Wall Street Journal.
Asia Global Crossing hired Lazard LLC to find investors after Global Crossing refused to lend it US$400 million at the end of last year and sales slumped.
Among potential buyers are Citic Pacific Ltd, an arm of China's biggest investment company, which said Saturday it is considering a bid with Carlyle Group, a US private equity firm with more than US$12.5 billion of assets. Emerging Markets Partnership and Softbank Asia Infrastructure Fund would also be involved.
Global Crossing is under investigation by the Securities and Exchange Commission on how it reported sales on capacity on its 27-nation fiber-optic network. Its Asian unit is cooperating with investigators probing its parent. In February, it said it has engaged in the type of transaction the SEC is investigating its parent for. The investigations have delayed Asia Global Crossing from filing an annual report.
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