Telesat owners Loral (LORL +4.1%) and Canada's Public Sector Pension Investment Board (PSP) are "attempting to bridge a $100 million value gap" to complete a deal to sell Loral's Telesat stake to the Ontario Teachers' Pension Plan, Bloomberg reports.
Loral, whose value is almost entirely derived from its 63% Telesat stake, is reportedly willing to sell itself for $85/share (a 14% premium from current levels).
But PSP, which owns 37% of Telesat and 67% of its voting rights, wants a Telesat valuation that's ~$100M lower than what Loral supports, since the sale effectively makes it a buyer. Talks are ongoing, and a deal might still happen in July.
Also complicating matters: Loral could be on the hook for $200M in legal costs related to ViaSat's patent suit against former subsidiary SSL. A jury awarded ViaSat $283M in damages in April.