Global Crossing and Asia Global Crossing plan mergers

Global Crossing Ltd and its 59% owned unit Asia Global Crossing said they are in preliminary discussions to merge the two companies. Global Crossing also said it expects its financial performance to be substantially below current analyst expectations for the third quarter ended Sept 30, 2001, due to a sharp falloff in wholesale sales of indefeasible rights of use (IRUs) to carrier customers. Gary Winnick, Chairman of both Global Crossing and Asia Global Crossing, said in addition to strategic benefits, a combination will result in cost savings, operational efficiencies and enhancement of product-service integration.

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