Pacific Crossing cable nears sale

The Financial Times reports that Japan's NTT Communications and Hong Kong's Pacnet each are separately in the running to acquire Pacific Crossing, which operates one of the largest trans-Pacific undersea fiber cables. Pacific Crossing's board is scheduled to meet this week to mull the bids.

The anticipated sale comes after more than a year of renewed activity and investment in market for trans-Pacific cables, activity which also has included plans for new cable projects involving U.S carriers and Google, among others, who see explosive bandwidth demand across Asia. Pacific Crossing claimed to be a carrier-neutral pipe.

Bermuda-based Pacific Crossing has about 20 owners, according to The Financial Times, and includes quite a bit of hedge fund investment. Hedge fund-fueled telecom concerns have been vulnerable during the current economic crisis, as such funds have lost investors and money. Ironically, Pacific Crossing already was smacked down once by economic troubles, when its previous owner, Global Crossing, filed for bankruptcy in 2002.

For more:
- The Financial Times has this report

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