<<RS, it's my understanding
that L* has somewhere between (38% - 42%) ownership of G*. Here is where things get fuzzy
GLP has (25% - 30%) ownership. Not positive of these numbers. Who owns the remaining
percentage of the company?>>
Globalstar Telecom Ltd, publicly traded under the symbol GSTRF, owns about 40% of Globalstr LP
Loral, as of y/e '99, also owned about 40% of Globalstar LP, but a significant fraction of that ownership was through ownership of GSTRF shares, so there is some overlap between the 40% of GLP owned by GTL and the 40% owned by Loral; I think at least 30% of GLP is owned by the other strategic investors, Qualcomm, Vodafone, France Telecom, etc.
<<Also, I have noticed people keep on saying G* bonds tell it all. First,
how does one purchase G* bonds. Second, what exactly does "G* bonds tell it all," mean?>>
Jon Koplik is a better one to tell you how to buy bonds, but the catch phrase "G* bonds tell it all" is usually uttered by wise and helpful shorts to disillusion foolish and hapless longs. Their point is that the bonds, when trading at 0.30 on the dollar imply that a lot of market participants think there's a big risk that the company will go bankrupt. They'll tell you, too, that bond traders are more likely institutions and therefore "smarter" than the average stock holder (although original owners of G* debt have lost 70% of their investment, while original buyers of G* equity are up 50%, so that argument is a little weak). Anyway, for sure, bondholders have to get paid their coupon rates, and, eventually, principal, or else the stock is worthless, so it's true that the bonds are lower risk. |
