Hey, Philip...Let's see, there approx. 176M shares of Loral.
As I'm pulling out the old calculator, divide 714M by 176..comes to
around $4.05 per share. Lockheed is paying 45.50 per share for Loral.
Of that 45.50, each shareholder is getting $38 in cash back immediately
after the settlement date. Then Loral will spin off 1 share of Loral
Space and Comm for each existing share of Loral Aerospace. This is not
an IPO! No new shares will be offered. Only the existing shares of
Loral will have a "due bill" attached good for one share of Loral Space.
But the good part of the deal is that, who has the money to buy that
many shares of Loral at around $46, to get enough shares of the Loral
Space? Only institutions, that I know of. By the way, let me introduce
myself. I am not a broker, or anyone selling this thing. I work for
Loral in Houston. Everyone in our company is frothing at the mouth to
see this deal come through. Only the ones with enough capital outside
of their 401K's are going to come out the real winner. I'm putting my
order in to by x,xxx shares through my broker. My portfolio will
accept the new shares in my technology holdings. But let's put a pencil
to it. Like I previously said, Loral Space is made up of 32%
GlobalStar, and the remaining in Loral Space and Missiles, K&F Industries,
franchises, etc. But if GlobalStar is selling for $48 bucks, 32% of that
is $16. I know were talking apples and oranges, but still the market
value of the new Loral Space should be at least $16, not counting the
other holdings. I don't know much about the other satellite companies,
but check out GlobalStar a little more. Qualcom holds a part of GlobalStar
and they are considered the owners of the defacto industry standard of
PCS protocal, CDMA. The tender offer has been delayed by the FTC investigations.
Anywayl, get your broker to check it out for you. I really think this
is a hot one. Keep in touch. See ya. Don. |
