RComm puts telecom units up for deal

By: Staff | December 14, 2009 | | No Comments

vIndianz.com ( 14 Dec. 2009) — Reliance Communications is looking to trade an undersea fiber optic network and an associated US business, hopeful to raise approximately $3 billion in cash, according to sources well-known with the subject.

relianceReliance acquired its FLAG network, which lies at the heart of its worldwide operations, in 2003 for $207 million, and currently sells both capacities on the network in addition to more profitable telecoms services to other carriers and companies about the world.

The FLAG business, which stands for Fiber-optic Loop around the Globe, is run by Reliance Globalcom, the company’s overseas arm. Reliance is in addition selling YIPES, a California-based Ethernet service provider it bought in 2007.

A Reliance spokesperson who did not desire to be named said, “We vehemently deny these speculations and rumors.”

Three sources with direct information of the sale said that Reliance had hired a bank to counsel on the auction, and that bids were due in late January. The adviser is shopping the assets to Japan’s KDDI and US operators AT&T and Verizon, the sources said.

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