September 23, 2003 -- (WEB HOST INDUSTRY REVIEW) -- U.S. President George W. Bush agreed last Friday to permit Global Crossing Ltd. (globalcrossing.com) to sell a majority stake to Singapore Technologies Telemedia (STT) (stt.com.sg), a unit of Temasek Holdings, the investment arm of the government of Singapore, according to reports published in CNN Money.
In a letter sent to Congress, Bush said he would "take no action to suspend or prohibit" the telco carrier from selling a 61.5 percent stake to STT.
Bush's decision comes after the Pentagon and Department of Homeland Security raised national security concerns about the deal in early July.
Critics say the STT deal would place a key telecommunications asset under foreign ownership.
The Defense Department also opposed the deal and rival telco XO Communications expressed its opposition
But according to sources quoted in CNN Money, the Justice Department and the economic wing of the administration backed the deal because of a lengthy network security pact reached with the companies.
STT agreed to pay $250 million for the majority stake.
Global Crossing filed for bankruptcy in January 2002 with $12.4 billion in debt and $22.4 billion in assets.
