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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: E Haiken who wrote (9156)	3/28/2001 10:56:08 AM
From: Rocket Scientist	Respond to of 10852

<<Would you elaborate on the significance of "clearing the liquidation preference on the preferred" & the connection between the Lockheed shares & Frank Lanza. >> In my understanding, the preferred stock that Loral is offering to convert would have to be bought out at a cost of 1.1B$ (50$ per share) in the event the company is purchased, before commons s/h would get a dime. IMO, that's a more compelling reason for mgmt to hope the pref'd is tendered than the cash flow savings, especially because Loral can suspend dividend payments on the pref'd for something like six quarters before the pref'd s/h have any recourse. As for a Lanza/LMT connection, it's pure speculation, but, as you probably know, Frank Lanza, the president of L3 Communications l-3com.com was formerly and for a long time president (under Bernard Schwartz) of "old" Loral. I believe the L3 corporate HQ is one floor of the old Loral HQ, with Loral Space & Comm taking up an adjacent floor of 600 Third Ave, NY, NY. L3 is a conglomerate of several "old Loral" divisions that LMT first bought back in '96, then spun off into L3. So Lanza knows Loral and Bernard Schwartz as well as anyone and also knows that LMT has 45M shares of Loral that it pretty much has to divest within the next two months. Unfortunately, L3 doesn't have much cash, but it does have 2.3B$ market cap. If it could exchange, say, 2-3M shares of L3 for the 45M shares of LOR held by LMT, it might be a win-win situation for all parties involved. Certainly, Loral s/h should be grateful to see a return of Lanza & Lapenta who have done much better for their fortunate stockholders than BLS and his team: siliconinvestor.com Anyway, pure speculation, but, in the absence of news, what else can we do?