Tuesday, 30 September 2014
Last updated 4 hours ago
Aug 13 2010 | 3:46pm ET
By Teri Buhl, Contributor
Harbinger Capital Partners chief Phil Falcone is moving ahead with his 4G wireless plan in a big way. According to people involved in the deal, Falcone is about to execute a cooperative agreement with London-based satellite company Inmarsat. The FCC approved the agreement last month and Falcone has been working to shore up financing.
Rumors have been swirling for over a year that Falcone plans a predatory move to take over the company, but people close to the situation tell FINalternatives that is not what’s happening right now.
What is happening is that Falcone is about to give Inmarsat a huge boost in cash and rent some quality satellite space to advance his plan to bring wireless service to those in remote areas.
People involved in the deal told FINalternatives that the initial payment of $90 million will come from the LightSquared balance sheet—a wireless venture funded by Falcone. LightSquared recently announced it had raised $1.75 billion to create a national wireless network, but analysts predict they still need to raise billions more to make it a reality. Additional payments down the road for Falcone to secure a perpetual lease of 18 MHZ of L band spectrum, which includes a mandatory minimum $100 million a year investment, will come from other capital raised outside of Harbinger’s hedge funds.
A banker who has reviewed the deal and spoke on the condition of anonymity said the agreement could add $1 billion of value to Inmarsat down the road by triggering a stream of payments to the satellite company. Falcone, through his hedge funds, owns 28% of Inmarsat’s stock.
Inmarsat would not comment on the transaction.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...