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

To: Valueman who wrote (1974)	2/18/1998 1:13:00 PM
From: Snake	Respond to of 10852

Loral Space In Talks To Buy All Or Part Of COMSAT By Brian Steinberg NEW YORK (Dow Jones)--Loral Space & Communications Ltd. (LOR) has held discussions with COMSAT Corp. (CQ) about purchasing all or part of the company, according to a person close to the situation. The two satellite communications companies have talked informally for several months. However, two months ago the companies entered into a confidentiality agreement to explore the possibility further, the person close to the situation said. Under a confidentiality agreement, two business parties often agree to share only with each other information not usually disclosed to the public. COMSAT's board discussed the potential Loral acquisition at its last meeting about a month ago, and is scheduled to discuss it again at its next meeting on Friday, according to the person familiar with the discussions. While it's not certain where the talks will lead, an all-out acquisition of COMSAT would likely cost more than $1.4 billion, the current market capitalization of the company. A Loral spokesman would neither confirm nor deny that any such confidentiality agreement existed. A COMSAT spokeswoman attributed the story to "market rumors." The company is scheduled to release its earnings report on Monday, the spokeswoman said, while confirming the company's board is set to meet on Friday. Loral, of New York, and COMSAT. of Bethesda, Md., have both in the past been represented by Morgan Stanley, Dean Witter, Discover & Co. (MWD), according to the person close to the situation. Morgan Stanley officials were not immediately available for comment. Loral Chairman and Chief Executive Bernard Schwartz is said to be eyeing COMSAT's international ventures, as well as its 19% stake in IntelSat, a non-profit cooperative that provides global satellite communications to its 142 members. However, COMSAT's relationship with IntelSat is said to be causing Schwartz some concern as it has apparently driven COMSAT's share price higher in recent days. IntelSat is planning to spin-off six of its satellites into a separate public company. COMSAT would own 16% of the new company, now known as INC, and would also be its largest single shareholder. COMSAT stock has moved higher recently. In trading Friday, a day after the IntelSat plan was announced, shares rose 1 11/16, or 6.3%. At midday Wednesday, COMSAT shares were up 2.21%, or 5/8, to 28 7/8, on volume of 244,800. Average daily volume is 155,007. COMSAT has pushed for the IntelSat spinoff through the creation of a publicly financed affiliate that would be allowed to pursue market opportunities competitively. To be certain, the spinoff plan has its critics, who say the creation of INC is anitcompetitive. COMSAT has performed in line with expectations recently, according to S&P Equity Group analyst Philip Wohl. "They're not doing gangbusters, but they're doing what they said they were going to do," he said. "No one expects them to be world-beaters, but people expect them to position themselves well." Loral Space & Communications was formed after its parent company, the former defense giant Loral Corp., sold its main operations to Lockheed Martin Corp. (LMT) in 1996 for $9 billion. Loral Space intends to design, build and operate a worldwide satellite-based telecommunications system. COMSAT Corp. provides access to satellite networks for customers which include long-distance phone companies, the federal government, and news organizations. In its third quarter, which ended Sept. 30, the company posted a loss of 41 cents a share on revenue of $147.1 million. -By Brian Steinberg; 201-938-5218; brian.steinberg@cor.dowjones.com Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services

To: Valueman who wrote (1974)	2/18/1998 1:17:00 PM
From: JMD	Read Replies (2) \| Respond to of 10852

Valueman, I've had so many friendly bets on this one I can't count'em. I could not for the life of me see how Bernie could resist (of course CQ's halt may be for other reasons and/or LOR may not be the buyer) but IF it is I'm going to at least collect a few psychic I told you so's. I bought CQ for my kids many, many years ago and of course they achieved an IRR of about 3.89% as a result of their father's brilliance. My last thought before selling them out last year was: but LOR will buy CQ and then they'll get into where they should be for a better price, no cap gains (small though they were), no commissions, etc. Finally, threw in the towel, sold their CQ and bought LOR. No regrets whatsoever but I'm going to be watching this one very, very closely! Regards, Mike Doyle