According to Reuters, XO, backed by billionaire investor Carl Icahn, is teaming up with Equity Partners, the private equity arm of Chicago’s Bank One Corporation to make a bid for the embattled carrier.
r
r
XO joins a list of suitors that already includes Oaktree Capital Management, Cerberus Capital Management, WilTel Communications Group and Level 3 Communications. According to a report by Carrier Hotels published yesterday, Qwest and Koch Data Centers have also entered the bidding, reportedly participating in discussions with C&W USA and requesting extensions on this afternoon’s 5:00 pm deadline.
r
r
This afternoon, Carrier Hotels reported that XO Communications had asked the bankuptcy court to disqualify the Gores bid for C&W due to its reported hiring away of an XO executive close to the bidding process. The employee, executive vice president Brian Oliver, helped guide XO’s acquisition process and according to the report, XO has expressed its concerns that Oliver could have divulged information concerning its acquisition strategy.
r
r
Reuters reported earlier today that Qwest has also filed legal action against Gores, saying that it had not yet received enough information about C&W’s US customers to submit a bid.
r
r
Other potential bidders are expected to pursue legal action, Reuters said.
