Loral Space & Communication announced Wednesday that its board of directors has reviewed a letter from EchoStar Communications Corporation in which it indicated an interest in purchasing all of Loral's assets for $1.85 billion. EchoStar's proposal, which the board rejected, was subject to numerous conditions.
Bernard L. Schwartz, chairman and CEO of Loral, 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.
"Further, we continue to believe that the best course of action for Loral to enhance the value of its assets, is to proceed with the proposed sale of our North American satellites and emerge from the bankruptcy process with a viable, ongoing satellite services and manufacturing business."
On July 15, 2003, Loral reached an agreement to sell Intelsat its six North American satellites (including Telstar 4) for approximately $1.1 billion. Consistent with the bidding procedures approved by the Bankruptcy Court, Loral will evaluate any and all bids that it may receive for its North American satellites on or before October 15, 2003, including one from EchoStar if it submits a bid for those assets.
