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Technology Stocks : Primestar/TCI Satellite (TSATA) -- Ignore unavailable to you. Want to Upgrade?

To: M. Dion who wrote (254)	1/24/1999 12:12:00 AM
From: M. Dion	Read Replies (2) \| Respond to of 442

This is the best post from yahoo i have read on the subject....worth reading........ Since everyone else seems to be analyzing the press releases I'll try. TSAT A & B has a total of 67,745,790 share outstanding per the 11/98 Qtr report. Also, the B shares hold more voting rights than the A shares. This is important! Now the deal: 1st Scenario 1) TSAT gets $35 Million in cash from GMH for Tempo. 2) TSAT gets $67.5 Million in cash or stock from GMH as part of DBS sale. (in addition to keeping a 37% stake in P) 3) TSAT still owns 37% stake in what's left in P. If all the cash part of deal ($1.32 Billion) is used to pay debt obligations it leaves $220 Million in GMH stock of which TSAT own 37%. so: 1) 35M/67,745,790 = $0.52/share 2) 67.5M/67,745,790 = $1.00/share 3) 220M37%/67,745,790 = $1.20/share TSAT shares = $2.72/share Note: TSATB shares closed friday at 2 11/16 = $2.69/share!!! TSATB shares have more voting rights!!! Hmmmm!!! 2nd Scenario 1) TSAT gets $35 Million in cash from GMH for Tempo. 2) TSAT remaining value with P is worth $67.5 Million. (all remaining cash and share of GMH were used to pay off debt, bondholders, etc. (this assuming bondholders accept the 0.67 on the dollar for their debt obligations) so: 1) 35M/67,745,790 = $0.52/share 2) 67.5M/67,745,790 = $1.00/share TSAT shares = $1.52/share Anyway I look at it, TSAT is worth at least $1.52/share. I plan on keeping the 3,300 shares of TSATA I bought on friday @ 1 5/32 for the run to at least $1.52/share, maybe more if TSATB share stay high.