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To: JMD who wrote (1908)	2/12/1998 4:51:00 PM
From: Valueman	Respond to of 10852

INTELSAT to spin off satellites into public co NEW YORK, Feb 12 (Reuters) - INTELSAT, an international treaty organization that owns and operates a global satellite system, said Thursday it plans to spin off six satellites into a publicly-traded company. The new company, to be known as INC, will be incorporated in the Netherlands and a initial public offering is expected in 1999, INTELSAT said. After the spinoff, INTELSAT will have 18 satellites remaining. INTELSAT will have a 10 percent ownership stake in INC, to be placed in a non-voting trust. The remaining INC shares will be initially held by INTELSAT's backers in proportion to their ownership of INTELSAT. The INC ownership mix will change as INC launches its initial public offering and subsequent voluntary share offering in public markets, INTELSAT said. The INC board will initially be comprised of seven members elected by the shareholders. There are provisions for expansion of the board up to 11 members in the future. None of the board will be INTELSAT employees, officers or governors, INTELSAT said. A search is underway for a chief executive. INC will maintain an ''arm's length'' relationship with INTELSAT for all business transactions. INTELSAT said it will continue operating with its remaining satellites. The restructuring ''is an important first step toward the goals we set last year,'' said Comsat Corp (CQ - news) president and chief executive Betty Alewine. Comsat is one of 140 companies that collectively own INTELSAT. Comsat will own about 16 percent of INC stock and be the largest single shareholder when INC is formed. ''The proposed transfer of these satellites to INC will allow a market valuation to be applied to these satellites for the first time, to the benefit of Comsat's shareholders,'' Alewine said. The restructuring plan is expected to be approve when the INTELSAT Assembly of Parties meets March 30 through April 1.