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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Scientist who wrote (8512)	12/1/1999 5:04:00 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 29986

Text of article about McCaw taking over the world with that "great" TDMA based service. **************************** 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. ¸1999 Bloomberg L.P. All rights reserved.