To: Jim Parkinson who wrote (5942 ) 5/1/1999 9:54:00 PM From: SafetyAgentMan Read Replies (1) | Respond to
Loral Shares Rise on Speculation of Liberty Alliance
New York, April 30 (Bloomberg) -- Share of Loral Space & Communications Ltd., one of the world's largest satellite makers, rose 8 percent on speculation that the company could form a strategic alliance with AT&T Corp.'s Liberty Media Group, analysts said.
Shares rose 1 7/16 to 19 1/2 in trading of 4.33 million, more than three times its three-month daily average.
Analysts said there was speculation that Loral could form a strategic alliance with Liberty Media to provide content for Loral's CyberStar LP division, which provides broadband services to desktop computers. There is also talk that Lockheed Martin Corp. would sell its stake in Loral to Liberty Media.
''Loral's stock is up on speculation in the marketplace,'' said Vijay Jayant, an analyst at Bear Stearns & Co., who has a ''buy'' rating on the stock. ''There's speculation of strategic alliance between a hand full of companies.''
Spokesmen for Liberty Media, Loral and Lockheed Martin declined to comment.
An alliance between Loral and Liberty Media would make sense because Loral needs content providers for its CybeSstar broadband product and cable-operator Liberty Media would be a good match, analysts said.
''It's the content they (Loral) are looking for,'' said Todd Ernst, an analyst at Prudential Securities Inc., who has a ''hold'' rating on Loral.
The partnership makes sense too for Liberty and its chairman John Malone.
''Clearly (Liberty) will look for opportunities where they can make investments in the entire telecommunications spectrum. To the degree that they want to extend their brands or enhance the product they currently own, if they can do it on a cost- effective basis, they will do it,'' said Chris Dixon, an analyst at PaineWebber Inc.
Apr/30/ 99 18:24
