Two Canadian pension funds near deal for Loral -source

Mon Nov 24, 2014 5:18pm EST
 
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Nov 24 (Reuters) - Ontario Teachers Pension plan and Canada's Public Sector Pension Investment Board are nearing a deal to acquire Loral Space & Communications Inc, according to a source familiar with the matter.

If the parties can reach a deal, the two Canadian funds will own Telesat, the Canadian satellite communications company which Loral owns a 62.8 percent share of and derives almost of all its value from. A deal could be announced as soon as December, the source said.

PSP already has a 35.3 percent economic interest in Telesat and 66.7 percent of the voting power. Loral had rejected a previous offer by the two Canadian firms over the summer which valued Loral at more than $80 per share. The parties have not decided on a final price yet and talks could still fall apart, the source said who declined to be identified because the matter is not public.

Bloomberg first reported that the Canadian funds were near a deal for about $85 per share for Loral on Monday. The shares closed up 7.2 percent at $78.50 on Nasdaq.

Representatives from Loral, Telesat, Ontario Teachers Pension plan, Canada's Public Sector Pension Investment Board and Loral's top shareholder, MHR Fund Management, could not immediately be reached for comment. (Reporting by Liana B. Baker; Editing by Bernard Orr)