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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) April 26, 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 April 25, 1999, the Registrant issued the press release attached as
Exhibit 99.1 to this Current Report on Form 8-K.
Item 7. 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 April 25, 1999
2
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GLOBAL CROSSING LTD.
(Registrant)
/s/ Dan J. Cohrs
____________________________
Dan J. Cohrs
Senior Vice President and
Chief Financial Officer
Date: April 26, 1999
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Exhibit 99.1
Global Crossing to Acquire Global Marine Subsidiary of Cable & Wireless
- -- Global Crossing fiber optic network combines with Global Marine's premier
submarine services group to create unprecedented new packages of maintenance,
restoration, and global transmission for worldwide carriers.
- -- William B. Carter, Jr., former President and CEO of AT&T Submarine Systems,
to be named Chairman of Global Marine.
- -- Global Crossing to contract with Global Marine for $80-100 million per year
in new worldwide undersea services.
- -- World's leading undersea cable installation and maintenance company services
more than a third of all undersea cable worldwide.
HAMILTON, Bermuda, April 25 /PRNewswire/ -- Global Crossing Ltd. (Nasdaq: GBLX -
news), the owner and operator of the world's most advanced global IP-based fiber
optic network, today announced a definitive agreement to acquire the Global
Marine business of Cable & Wireless plc in a transaction valued at 550 million
pounds (approximately $885 million), consisting of a combination of cash and
assumed indebtedness. Global Marine is expected to generate cash flow
approaching $100 million in the current fiscal year. The acquisition gives
Global Crossing a unique asset at a time of rapid growth in the $10 billion
market for undersea cable deployment driven by exploding international demand
for data, voice, video and Internet connectivity.
Global Marine currently provides services, including maintenance under a number
of long-term contracts, to cables built by more than 100 carriers such as AT&T,
NTT, Deutsche Telekom, MCI Worldcom, British Telecom, Telefonica, Singapore
Telecom and others, as well as submarine cable contractors such as Tyco, Alcatel
and KDD.
Global Marine is the world's largest and most advanced undersea cable
installation and maintenance company with a fleet of 13 cable ships (33 percent
of the world's total), 21 submersible vehicles and 1,200 employees now servicing
more than 35 percent of the world's undersea cable miles. Global Marine, which
today operates in the Atlantic, the Pacific, and around the world, traces its
origins to 1850 when it laid the first telegraph cable between England and
France.
William B. Carter, Jr., President of Global Crossing Development Company and
former President and CEO of AT&T's Submarine Systems division, will serve as
Chairman of Global Marine, which will operate as an independent division of
Global Crossing. Carter, in his 30-year career, has overseen the construction of
many of the world's undersea cables. Dave Foot, currently Chief Executive
Officer of Global Marine, will continue in that position.
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"We are acquiring the world's largest and most experienced undersea cable
service company at a time when Global Crossing is well on its way to completing
the largest and best-funded undersea cable network in the world," said Bob
Annunziata, Global Crossing's Chief Executive Officer. "As the former head of
AT&T Submarine Systems, Bill Carter is the ideal executive to lead this new
business segment for Global Crossing and take full advantage of the many
opportunities for profitable growth as demand for global bandwidth explodes."
As part of Global Crossing, Global Marine will be able to offer its
international telecommunications customers a unique bundle of products that
includes transmission and restoration facilities, as well as the cable
installation and maintenance services it has traditionally offered.
"This acquisition increases Global Crossing's ability to control the
installation and maintenance of our undersea global network, making us even more
cost-effective while ensuring the highest quality service to our customers,"
said Bill Carter. "Global Crossing had expected to spend approximately $80-100
million annually to install and maintain its unmatched undersea network. Prior
to the acquisition, these payments would have been made to third parties. The
Global Marine division will have the capability to handle Global Crossing's
needs, as it continues to serve its existing customer base, which includes
nearly all of the world's leading providers of international telecommunications
capacity."
Carter continued, "We welcome Dave Foot and his entire team into the Global
Crossing family, and look forward to working with them. In addition to its ideal
strategic fit with Global Crossing's existing operations, Global Marine is a
very attractive business in its own right. As the market for subsea transmission
expands, we will have a unique ability to offer our customers a combination of
maintenance, installation, and transmission products never before available
globally from a single provider. Global Marine's customers can expect the
premium levels of service they've always had, as well as access to new
services."
"I am very excited to become a part of Global Crossing, a world-class company
that has the vision and capital necessary to realize Global Marine's substantial
growth potential in the years ahead," added Dave Foot. "Together we will have
the opportunity to provide an unmatched scope of services to our customers on a
global scale."
Global Crossing will finance the acquisition with committed bank financing and
cash on hand. The acquisition is expected to be immediately accretive to cash
flow. The transaction, which is expected to be completed within 60 days, is
subject to certain regulatory and other approvals.
Chase Securities Inc. acted as financial advisor and Simpson Thacher & Bartlett
acted as legal advisor to Global Crossing.
About Global Crossing
Global Crossing is building and operating the world's most advanced global IP-
based fiber optic platform for data, voice, video and Internet transmissions.
The Global Crossing Network will span four continents and address 80% of the
world's international traffic. Global Crossing's operations are headquartered in
Hamilton, Bermuda, with offices in Los Angeles, New York City, Morristown, New
Jersey, San Francisco, Miami, London, Amsterdam, and Buenos Aires.
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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 Securities and Exchange
Commission (SEC). Copies of these filings may be obtained by contacting the
company or the SEC.
