India media baron joins bidding for ICO Global,offers $1.2 billion
Tuesday November 16, 11:37 am Eastern Time
NEW DELHI, Nov 16 (Reuters) - Indian media baron Subhash Chandra has joined the race to control bankrupt satellite phone company ICO Global Communications Ltd (NasdaqSC:ICOGF - news), a spokeswoman for the industrialist said on Tuesday.
``Mr. Chandra has offered $1.2 billion for ICO. This amounts to a 74 percent stake. As yet, no decision has been taken. By the end of this month we expect to know,' she told Reuters.
Chandra, who is chairman of Zee Telefilms Ltd (http://www.zeetelevision.com/zee/newlook/default.htm )which runs a popular Hindi satellite television channel, has plans to launch his own global hand-held satellite telephone service called Agrani.
The spokeswoman said Chandra had commitments from bankers and investors and money from the television business would not be used for the offer. She said Chandra was currently in London to pursue the deal.
Business Standard daily reported on Tuesday that Chandra's bid topped one from U.S. technology investor Craig McCaw and Teledesic LLC of $1.2 billion for an 80 percent stake.
On November 10, ICO Global said the U.S. bankruptcy court had approved $150 million of interim financing from McCaw and Teledesic, calling it the first step towards a $225 million first-round financing by Teledesic, McCaw, Eagle River Investments LLC and some existing ICO investors.
Privately-held Teledesic was founded by McCaw and Microsoft (NasdaqNM:MSFT - news) founder Bill Gates.
ICO, which aims to provide a global phone service through a network of 12 satellites, filed for bankruptcy in August.
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