Law Enforcement and National Security Concerns Impacting Investment in GlobalNetworks: Lessons from Global Crossing

摘要

In recent years, and particularly in the post-September 11 era, the Committee onrnForeign Investment in the United States ("CFIUS") has significantly tightenedrnrestrictions on foreign investment in "critical infrastructure," a large sector of the U.S.rnEconomy that includes telecommunications and technology-related businesses. Thernmost comprehensive restrictions are contained in a network security agreement thatrnGlobal Crossing Limited ("Global Crossing") and its Asian parent, SingaporernTechnologies Telemedia Pte Ltd ("ST Telemedia"), entered into in late 2003. Whilernthose restrictions potentially make Global Crossing's network the most secure in thernUnited States, they also demand a significant resource commitment to implement andrnmaintain. Moreover, with that agreement, the national security review process hasrnbecome more complex, uncertain and time consuming than ever before. Foreignrninvestors need to be aware that the process not only could take much longer torncomplete than in the past, but could result in substantial limitations on their ability tornmanage key aspects of the companies they seek to acquire and to integrate U.S.rnOperations into a broader global organization.