Equant Shares Jump Amid Merger Talks

U.S. shares of Equant jumped 15% amid reports that France Telecom, Global Crossing Ltd. and others are in various stages of merger talks with the Amsterdam-based communications firm. Sources say the discussions are furthest along with France Telecom, which was exclusively negotiating with Equant until last week. Equant could bring Bermuda-based Global Crossing more customers for its sprawling communications network, but a person familiar with the company said another large-scale purchase by Global Crossing is unlikely because the company’s shares have plunged and shareholders would resist any further dilution of the stock. In addition, Global Crossing Chief Executive Leo Hindery Jr. has said in recent interviews that the company is focused on operations and not on further acquisitions. Equant’s U.S. shares rose $6.75 to close at $49.13 on the NYSE. Global Crossing, which has executive offices in Beverly Hills, closed off 6 cents at $28.56 on Nasdaq.