Two Canadian pension funds renew offer for Loral Space: WSJ

Tue Oct 28, 2014 5:31pm EDT
 
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(Reuters) - A consortium of two Canadian pension funds renewed its offer for satellite manufacturer Loral Space & Communications Inc, the Wall Street Journal reported, citing people familiar with the matter.

The Ontario Teachers' Pension Plan and Public Sector Pension Investment Board (PSP), recently approached Loral again about a deal, the Journal reported.

Loral's efforts to sell itself and its main asset, Telesat Holdings Inc, broke down earlier this year after the company failed to agree on a potential $7 billion deal with the consortium.

The talks broke down over a very small price gap, Reuters reported in June, citing people familiar with the matter.

At the time, PSP had a 35.3 percent economic interest in Telesat and 66.7 percent of the voting power.

Together with Telesat and including debt, the company has an enterprise value of about $7 billion, one of the sources told the Journal. Loral had a market capitalization of $1.59 billion as of Tuesday's close.

One of Loral's largest shareholders, Highland Capital Management LP, said in a filing in August that there should be no urgency to sell the company unless a substantial premium to its share price is offered, the paper reported.

The latest development marks the third time that efforts to sell Telesat failed. Three years ago, Loral and PSP jointly explored the sale of Telesat, seeking as much as $7 billion, but could not agree on a price.

Loral shares closed up 5.5 percent at $74.23 Tuesday on the Nasdaq.

(Reporting By Arathy S Nair in Bangalore; Editing by Saumyadeb Chakrabarty)