Text of article about McCaw taking over the world with that "great" TDMA based service.
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Craig McCaw in Final Stages of Iridium Purchase, Analyst Says
Washington, Dec. 1 (Bloomberg) -- Craig O. McCaw, who
brought cellular telephones into common use, is close to buying
cash-strapped Iridium LLC following his $1.2 billion bid last
month for rival ICO Global Communications Ltd., an analyst said.
McCaw's bid for the satellite-telephone company was made
Friday and is still being negotiated with Motorola Corp.,
Iridium's biggest investor, said SoundView Technology Group
analyst Tim O'Neil. He declined to say where he got the
information.
If successful, McCaw would gain the two companies -- both of
whom filed for bankruptcy protection in August -- at a fraction
of the money spent building the satellite systems, O'Neil said.
McCaw's move also would create a strong rival for Globalstar
Telecommunications Ltd., another satellite-based phone network
that's 45-percent owned by Loral Space & Communications Ltd.
``Combining this purchase, if it goes through, with the
purchase of ICO gives McCaw the credibility, authority and a
product that potentially could be priced competitively to
cellular, with no debt and worldwide coverage,' O'Neil said.
``The combination of all these things gives him a competitive
advantage over Globalstar.'
McCaw spokesman Roger Nyhus said McCaw is still exploring an
investment opportunity with Iridium and wouldn't comment on
O'Neil's report. Iridium spokeswoman Michelle Lyle declined to
comment on the purchase, as did Motorola.
McCaw Cellular Communications was the largest U.S. cellular-
phone company before its 1994 sale to AT&T Corp. McCaw, 50, is
the largest investor in wireless company Nextel Communications
Inc. and the founder of Teledesic LLC, a satellite-data network.
Bankruptcy Protection
Washington-based Iridium filed for Chapter 11 bankruptcy
protection after failing to attract enough subscribers to its 66-
satellite global phone network. The company, which defaulted on
$1.55 billion in bank loans, had an estimated 20,000 subscribers
as of August. It had expected 600,000 by the end of the year.
London-based ICO Global also filed for bankruptcy protection
in August after failing to raise enough financing, raising
questions about the market for satellite-based phone services.
Shares of Iridium World Communications Ltd., which were
delisted from the Nasdaq Stock Market on Nov. 22, rose 5/16
yesterday to 2 3/16 in trading on the ``pink sheets,' a list
published daily that gives information on over-the-counter stocks
not listed on the Nasdaq. The stock, which is the publicly traded
arm of Iridium LLC, have fallen almost 95 percent this year.
Globalstar fell 1 3/8, or 5.7 percent, to 22 5/8 in
late trading. The shares have risen about 12 percent this
year.
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