Loral Rejects EchoStar’s Conditional, $1.85 Billion Offer
Loral Space & Communication‘s [OTC BB: LRLSQ] board of directors has rejected the latest attempt by EchoStar Communications [Nasdaq: DISH] to enter the bidding process for Loral’s assets. The board acknowledged that it had received a letter from EchoStar expressing interest in buying all of Loral’s assets for $1.85 billion but added that the non-binding offer included “numerous conditions.” Loral agreed in July to sell its North American satellite assets to Intelsat through a yet-to-be-held bankruptcy court auction for an estimated $1 billion.
Commenting on the board’s action, Loral Chairman and CEO Bernard L. Schwartz said, “EchoStar’s bid undervalues Loral’s businesses, especially in light of the significant increase in value that has been achieved since the beginning of the company’s reorganization case in July. Our recent satellite awards demonstrate that Loral remains a trusted and valued business partner, providing the industry’s most advanced and reliable satellites and satellite services.”
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