NEW YORK (Bloomberg) ? Bermuda-based Global Crossing Ltd., a fibre-optic communications network operator, will sell $125 million in convertible notes and 6.75 million common shares to raise cash. The stock fell 12 percent, the most in more than a year.

Proceeds of the offerings will be used for general corporate purposes, which may include acquisitions, Global Crossing said on Friday in a statement. Goldman, Sachs & Co. will be the sole book runner and Morgan Stanley will be the deal?s joint manager, Hamilton, Bermuda-based Global Crossing said.

The stock offering, equal to 28 percent of the company?s current shares outstanding, may dilute the value of existing holders? stakes.

Chief executive officer John Legere is looking for ways to make up for dwindling telephone service revenue, which fell 35 percent to $172 million in the fourth quarter.

The company sells services to the US Air Force and Microsoft Corp.

Global Crossing shares fell $3.15 to $22.25 at 4 p.m. New York time in Nasdaq Stock Market composite trading, the steepest drop since February 1, 2005.

The company, which also provides high-capacity circuits for Internet traffic, exited bankruptcy court protection in December, 2003.

On March 16, Global Crossing forecast sales to fall to no more than $1.9 billion this year from $1.97 billion in 2005.