Global Crossing, sells another bit of itself

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If they continue selling themselves piece by piece, like they have been recently, and if their revenues continue to decline the way they are, it is only a matter of time before Global Crossing simply vanishes. No loss really. Today the company announce that it is going to sell its Trader Voice division to WestCom Corp for $25 million. Trader Voice is a division that provides voice services to the financial markets. What’s amazing is that this is all they could get for a business they bought back in February 2000 for $3.8 billion. At the time, it was called IPX/IXNet. A substantial portion of this business was divested back in November 2001 for about $350 million. Just for context, here is a little twist – WestCom is owned by One Equity Partners, a private equity unit of J.P. Morgan Chase & Co. One of its general partners is David Walsh, who was the former CEO of IPC/IXNet. IPC/IXNet had raised money from a fund called Allegra Partners and two of the general aprtners from that fund are now at One Equity. Just connecting the dots here. In case you had forgotten, Global Crossing was the six largest bankruptcy in the history of US and wiped out about $45 billion in stock value.

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George Antony

That is a powerful observation no doubt especially the dollar difference on resale and the connecting the dots part. But at the same time these guys are winning fairly big contracts [BC, SUN] fairly regularly!

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