Loral reject $1.85 billion offer

The board of bankrupt Loral Space & Communication today rejected EchoStar Communications Corporation’s $1.85 billion offer to purchase Loral’s assets.

Loral Space & Communication today announced 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 reorganisation 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.