June 17, 2002 — (WEB HOST INDUSTRY REVIEW) — According to a report released by Reuters on Monday, two consortia are currently bidding for the bulk of the network belonging to bankrupt telecommunications firm KPNQwest (KPNQwest.com).
The Dutch network operator, which filed for bankruptcy last month with an overwhelming amount of debt accumulated while building its European network, is under administration and trustees are seeking buyers for its assets.
The two consortia reportedly include telecoms companies, financial investors and some technology providers.
According to the report, the consortia are very seriously bidding for the entire KPNQwest network, excluding Central Europe. The company also has at least 30 serious bidders for pieces of the network.
The bidders are rumored to include Britain?s Colt and Cable & Wireless, Deutsche Telekom and US communications company AT&T.
The report also stated that a separate deal for the Central European operations would likely be concluded this week. The buyer is expected to be Lehman Brothers.
KPNQwest?s market value dropped from 42 billion euros to seven million in a matter of two years when its shares plunged after the bandwidth market became saturated.
