Nov. 24, 2014, 4:02 PM
- Bloomberg reports The Ontario Teachers Pension Plan and Canada's Public Sector Pension Investment Board (PSP) are near a $7B deal to buy Telesat that would value Loral (LORL +7.2%) at $85/share.
- Loral has spiked to $78.50 on the report. The company recently shot down a Telesat deal valuing it at $80/share.
Jun. 24, 2014, 7:13 AM
- Loral (LORL) has declined a $7B deal to sell its stake in Telesat and sell itself for $80/share to the buyer group Ontario Teachers Pension Plan.
- The deal was rejected after a small price gap in the agreement could not be resolved.
- Both parties are reported to be no longer negotiating.
- Previous coverage
Jun. 4, 2014, 2:46 PM
- 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.
- Previous coverage: I, II
Apr. 10, 2014, 8:58 AM
- Loral Space (LORL) +7.7% premarket as Bloomberg reports Ontario Teachers’ Pension Plan is the front-runner to acquire LORL's Telesat for ~$7B including debt, or at least $80/share.
- The Telesat purchase apparently would come in two pieces: buying LORL, which owns 63% of the company, and acquiring the rest from Canada’s Public Sector Pension Investment Board, which co-owns the satellite operator.
- The discussions indicate that LORL’s top shareholder, Mark Rachesky’s MHR Fund Management, and PSP are now working together to get a deal completed.
Mar. 3, 2014, 4:31 PM
- Reuters reports Loral (LORL +0.7%) has hired i-bank Perella Weinberg to advise its board on a potential sale.
- The news service reported in January Loral, which owns a majority stake in Canadian satellite network owner Telesat (but a minority voting stake), was working with Credit Suisse regarding a sale, and that it was talking with Canada's public sector pension investment board (another Telesat shareholder) about a joint Telesat sale.
- Any bid for Loral would depend on the support of 38% shareholder MHR Fund Management.
Jan. 22, 2014, 5:12 PM
- Loral (LORL +2.9%) shares surged into the close after Reuters reported the company is exploring a sale. Word of a possible deal surfaced back in Oct., but the new report adds that Mark Rachesky's MHR Fund Management has retained Credit Suisse to prepare for the ball.
- According to sources, Loral is also discussing a potential joint sale of Telesat with Canada's Public Sector Pension Investment Board. Although Loral holds a 62.8% economic interest, it possesses just 33.3% of the voting stock, making a sale dependent on PIB. The 2 had explored a sale 3 years ago and sought as much as $7B but could not agree on a price.
Jun. 27, 2012, 11:20 AM
Jun. 27, 2012, 5:09 AMLoral Space & Communications (LORL) agrees to sell its satellite manufacturing unit Space Systems/Loral (SS/L) to Canada's MacDonald, Dettwiler & Associates for $875M. Loral also expects to receive dividends and other payments from SS/L of over $135M. The company will look to use the proceeds to return cash to shareholders. (PR) | Comment!
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