Few takers for RCOM’s global undersea cable business Reliance Communications (RCOM), which is planning to sell off its global undersea cable network division, has reportedly attracted interest from only a few international players such as Singapore Technologies Telemedia and NTT Corporation.
The assets, which form a part of the deal include FLAG, Yipes, a California-based Ethernet service provider, and Vanco, a British telecom service provider purchased by RCOM in 2008. The main reason for the poor response for RCOM’s intended deal is that the operator is said to be demanding a price of around $3 billion while these assets had been purchased by it for less than $600 million. RCOM has already extended its initial deadline of endJanuary 2010 for bid submissions.
