SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) October 11, 1999
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GLOBAL CROSSING LTD.
___________________________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Bermuda 000-24565 98-0189783
___________ ___________ _______________
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
Wessex House, 45 Reid Street, Hamilton HM12 Bermuda
___________________________________________________________________________
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (441) 296-8600
______________
NOT APPLICABLE
___________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On October 11, 1999, the Registrant issued the press release attached
as Exhibit 99.1 to this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits.
The following exhibit is filed as part of this Current Report on Form
8-K:
Exhibit Number Exhibit
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99.1 Press Release of the
Registrant, dated
October 11, 1999
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
GLOBAL CROSSING LTD.
By: /s/ Dan J. Cohrs
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Name: Dan J. Cohrs
Title: Senior Vice President and
Chief Financial Officer
Dated: October 12, 1999
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Exhibit 99.1
GLOBAL CROSSING TO ACQUIRE RACAL TELECOM
FOR (POUND STERLING)1 BILLION
ACQUISITION SUBSTANTIALLY ACCELERATES GLOBAL
CROSSING'S GLOBAL STRATEGY IN EUROPE
LONDON -October 11, 1999 -Global Crossing Ltd ("Global Crossing"), which is
building and operating the world's most advanced global IP-based fiber optic
network, and Racal Electronics Plc ("Racal"), today announced that an
agreement has been reached for Global Crossing to purchase Racal Telecom, a
group of wholly owned subsidiaries of Racal, for (Pound Sterling)1 billion
(approximately $1.65 billion) in cash.
This acquisition represents an important step in the expansion of Global
Crossing's pan-European business, and its overall strategy of providing
customers with integrated global end-to-end connectivity and a wide range of
services.
Racal Telecom's IP capabilities and deep national network complement Global
Crossing's growing reach across five continents. This combination is
expected to create significant new opportunities for revenue growth and cost
synergies arising from:
. A platform for targeting multinationals and large businesses with a
range of products and services, both within the UK and internationally;
. A strategic position in the European and UK telecommunications markets
- the UK is the world's fourth largest and the fastest growing market for
international telecommunications traffic;
. Racal Telecom's leading presence in the government and transport
sectors, enhancing Global Crossing's existing UK operations (including
the Global Network Center located in the London Docklands and the UK
business recently acquired from Frontier); and
. Global Crossing's ability to offer seamless end-to-end connectivity on
attractive terms for origination and termination of traffic between the
Americas, Europe and Asia.
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The purchase of Racal Telecom accelerates Global Crossing's drive to be a
fully integrated provider of data-oriented products and services in the most
important telecommunications markets in the world. Racal Telecom is already
rolling out an extensive pipeline of new products focused on corporate needs,
which will enhance the utilization of its carrier grade network. The Racal
Telecom network is the primary source of MCI Worldcom's UK network capacity,
in addition to its other significant carrier relations with Cable & Wireless,
NTL and Telewest.
Racal Telecom's operations are highly complementary to Global Crossing's UK
business, with no duplication of personnel or assets. Racal Telecom has
recently undergone a reorganization led by a new management team with
significant industry expertise. The key executives include Martin Lea (Racal
Telecom's managing director), Martin Burvill (previously at Equant and BT
Syncordia Global Solutions), Keith Dewar (former marketing director at Cable
& Wireless Global Markets), Paul Gaffney (previously e-commerce manager for
IBM Global Services), Trent Homes (Director, International Carrier Services)
and Bob Falconer (Director, Networks). In addition, Racal Telecom has a
wealth of skilled engineers whose technical knowledge can be leveraged across
Global Crossing's pan-European operations.
Racal Telecom's highly secure network comprises 7,300 route kilometers of
fiber laid alongside railway lines and utilizing IP-centric leading
technologies (SDH, DWDM, ATM and Frame Relay). Racal Telecom's network
reaches more than 2,000 cities and towns across the UK and will be within 5km
of almost 70% of all UK business customers by 2001. Additionally, Racal
Telecom's advanced network provides Global Crossing with 20 ATM data
switches, 4 AXE-10 voice switches, a frame relay network across Europe and
the largest X25 network in the UK. Through the depth of this network, Racal
Telecom has more interconnection points with British Telecommunications than
any other UK carrier, thereby significantly reducing its costs. In the
financial year ended 31 March 1999 Racal Telecom had proforma revenues of
approximately (Pound Sterling)200 million and earnings before interest, tax
and depreciation of approximately (Pound Sterling)38 million.
The combination of Racal Telecom's extensive data expertise, skilled
workforce and high quality network further drives Global Crossing's ability
to offer a full range of IP/data products and services both in the UK and
throughout Europe.
Commenting on the announcement, Bob Annunziata, the CEO of Global Crossing,
said:
"Racal Telecom's extensive network adds to Global Crossing's existing UK
operations and soon to be completed pan-European network, and represents an
exceptional opportunity to accelerate our development of the world's first
global independent telecommunications company. The customer-focused business
and skilled workforce that Racal Telecom provides will create a platform for
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us in Europe from which we can offer businesses the full benefits of Global
Crossing's worldwide operations."
Lodwrick Cook, KBE, the Co-Chairman of Global Crossing, added:
"Racal has invested over (Pound Sterling)400 million in the past few years to
create the UK's broadest IP-centric network in the UK. This network puts us
close to the customer with the capabilities they require. Our data-centric
global network also positions us well to provide the backbone for the new
third-generation mobile operators, soon to be licensed."
Global Crossing was advised by Goldman Sachs.
A presentation to analysts will be made at 09.30 (UK time) at the City
Presentation Centre, 4 Chiswell Street, London EC2.
Enquiries:
Global Crossing
Rick Laubscher
Monday 11 October: +44 (0)20 7251 3801
Tuesday 12 October -Friday 15 October at Telecom 99,
Geneva: +41 (0)79 615 50 31
Thereafter: +1 310 385 3820
http://www.globalcrossing.com/
Finsbury
Roland Rudd
Justine Samuel
Melanie Bosworth
+44 (0)20 7251 3801
Goldman Sachs International, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited, is acting for Global Crossing in
connection with the transaction described in this announcement and for no-one
else and will not be responsible to anyone other than Global Crossing for
providing the protection afforded to customers of Goldman Sachs International
or for providing advice in relation to the transaction.
Statements made in this press release that state the company's or
management's intentions, beliefs, expectations, or predictions for the future
are forward-looking statements. It is important to note that the company's
actual results could differ materially from those projected in such
forward-looking statements. Information concerning factors that could
cause actual results to differ materially from those in the forward-looking
statements is contained from time to time in the company's filings with the
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U.S. Securities and Exchange Commission (SEC). Copies of these filings may
be obtained by contacting the company or the SEC.
Notes to Editors:
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About Global Crossing
Global Crossing (Nasdaq: GBLX) owns and operates a state-of-the-art fiber
optic network in the United States and is developing and operating the
world's first truly global IP-based fiber optic network with 88,100 announced
route miles to connect five continents, 24 countries and 170 cities. The
Global Crossing Network and its product offerings will be available to over
80% of the world's international communications traffic. Through its
subsidiary Global Crossing Marine, based in Chelmsford, Global Crossing also
owns the largest fleet of cable laying and maintenance vessels in the world
and currently services more than a third of the world's undersea cable miles.
Global Crossing is included in both the S&P 500 and the Nasdaq 100. Global
Crossing's operations are headquartered in Hamilton, Bermuda, with executive
offices in Los Angeles, California, Morristown, New Jersey, and Rochester,
New York. For more information, visit www.globalcrossing.com.
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