STT Communications has announced the sale of its entire holding of 10.2m shares in Equinix, a stake of about a third of the company on a fully diluted basis. About half the stock will be made available via a public offering with the balance sold through a forward contract arranged with CSFB. STT acquired its stake following its US$30m cash investment and three-way merger of its i-STT data centre subsidiary with that of Asia-Pacific colo operator Pihana and Equinix in December 2002, a deal that effectively rescued Equinix and allowed it to retire up to 80% of its long term debt at the same time. (Equinix purchased some US$130m of outstanding debt and senior notes for US$23m). Apart from the timing of it this sale would not appear to have been unexpected though, since STT also now owns 72% of Global Crossing that it acquired when rescuing that company from Chapter 11 in 2002. Owning a large, global network and a major stake in a carrier neutral colocation provider could appear as a slightly conflicting strategy which the upcoming share sale will now resolve. STT is a wholly owned subsidiary of the Government of Singapore's investment group Temasek Holdings. Equinix stood at US$ 37.14 at the time of writing this article.