Qwest News:
UPDATE 1-KPN emerges as potential KPNQwest bidder
7/1/2002 8:52:44 AM
UPDATE 1-KPN (NL:00908) emerges as potential KPNQwest bidder
By Eric Onstad
AMSTERDAM, July 1 (Reuters) - Dutch telecoms group KPN Telecom emerged on Monday as a potential front runner to buy all of Europe's biggest fibre optic network as the liquidators of bankrupt telecoms firm KPNQwest raced to find a single buyer.
Administrators have been fighting to keep KPNQwest's (NL:36492) 25,000 km datacommunications network running as they seek to sell it to one bidder, which is expected to fetch a much higher price than if they split it up.
However, two interested parties have both fallen by the wayside, leaving around 40 firms waiting in the wings to buy just sections of it.
KPN, a founder of KPNQwest and major shareholder, said on Monday it might be interested in buying more than just parts of the network, as it previously indicated.
"We might be interested in the whole network," a KPN spokesman told Reuters, but declined to provide further details.
He also said the network was not in immediate danger of closing after KPN and other telecoms firms contributed enough cash to stave off suppliers for the time being.
Administrators were not able to agree with Dutch venture fund Trimoteur on their 200 million euro bid for the entire network late on Friday while U.S. telecoms giant AT&T (T) dropped out of the running last week.
"I would still prefer to sell it as a whole," KPNQwest administrator Jan van Apeldoorn told Reuters, but added he was not aware that KPN was a potential bidder.
KPNQwest was declared bankrupt at the end of May and its spectacular collapse led investors and lenders to question whether the company misled them by presenting an artificially positive picture of its finances.
The former chief executive said the collapse of the debt-laden firm was sparked by a dramatic fall-off in demand for data services.
HOPE OF FRESH TALKS
Apeldoorn still held out hope of a revival of negotiations with Trimoteur, saying a big sticking point had been finding agreement on who would be responsible for keeping the network running while the formalities of a deal were concluded.
But Trimoteur partner Joost van Raay said it was probably too late to put their bid back on the table, especially since he had the feeling that creditor banks were opposed.
A source close to the banks said the Trimoteur bid was rejected because only 60 million euros of the bid was in cash.
Administrator Apeldoorn said there was no guarantee the network would be able to continue running after Monday, but the KPN spokesman said there were enough funds for "a period", declining to be more specific.
KPNQwest and other telecoms firm have banded together to keep the network running by paying suppliers directly, bypassing creditor banks which have seized funds paid by customers.
Complicating the sale process has been the dispute over why KPNQwest imploded so quickly. KPNQwest's auditors said last Wednesday that they had not approved the firm's 2001 results, disputing statements made by the firm's former chief executive.
Like ailing WorldCom (WCOME) , which faced fraud charges after uncovering improper accounting for almost $4 billion in expenses, KPNQwest's auditor was Arthur Andersen.
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
