Loral Space & Comms still for sale
Loral Space & Communications, which owns a majority stake in Canada-based satellite operator Telesat, is still up for sale despite the expiration of the ‘sale’ deadline by co-investor in Telesat, PSP Investments.
However, any sale also has to cope with an on-going legal dispute between its former subsidiary Space Systems/Loral (SS/L) and satellite broadband operator ViaSat. This litigation and its costs are ring-fenced as far as any sale is concerned but the complications might be enough to dissuade potential buyers. ViaSat is suing SS/L and alleging that SS/L used certain key patents of VaiSat’s when building other, rival satellites. Loral says it will appeal any negative decision at a cost of up to $800,000 a month.
Loral Space & Comms says that it has an acceptable – but unnamed – offer but that the negotiations were complex and that more time was needed. Additionally, any sale would also lead to a restructuring of the agreement between Loral and PSP Investments (one of Canada’s largest pension investment managers) and the holdings in Telesat.