Friday, 1 August 2014
Last updated 1 hour ago
Oct 28 2013 | 11:58am ET
Harbinger Capital Management's Philip Falcone is fighting tooth and nail to hold on to his satellite company. MHR Fund Management's Mark Rachesky is ready to unload his.
MHR is set to put Loral Space & Communications up for sale, contacting potential buyers. MHR owns 38% of Loral, which itself owns 62.8% of Canadian satellite company Telestat, and Rachesky serves as the company's chairman.
No investment bank has been hired yet, the New York Post reports. The tabloid adds that Rachesky is expected to seek a big premium for Loral, a demand that could sink the sale.
It wouldn't be the first time: Rachesky cancelled a 2011 auction for Loral—one which drew bids from the Carlyle Group, Kohlberg Kravis Roberts and Providence Equity Partners—when it produced a top offer of $6 billion.
This time around, Rachesky is expected to seek more than $100 per share for Loral, a $30 premium for a stock that is already up 26% this year.