Joint Offer Would Set Up
Unusual Pairing of Rivals
Looking to Reduce Costs
By DENNIS K. BERMAN, ANDY PASZTOR, and DANA CIMILLUCA
June 14, 2007; Page A3
Liberty Media Corp. and EchoStar Communications Corp. are preparing a surprising joint offer for satellite-communications provider Intelsat Ltd., which is accepting final bids for its auction today, according to people familiar with the matter.
The pairing represents a bold cooperation between satellite-TV broadcaster EchoStar and media holding company Liberty, which is slated to take control of competing satellite-broadcaster DirecTV Group Inc. in the coming months. The two firms still could decide against making a formal bid.
Intelsat is expected to draw bids of $4.5 billion to more than $5.5 billion, according to people familiar with the auction. The company already supports about $11.5 billion in debt, put on the company after a series of mergers and one-time dividends paid to its group of four private-equity owners.
If it succeeds, the joint bid would create a highly unusual partnership between two strong-willed rivals who run satellite-to-home broadcast systems that currently compete with each other. But the two have been exploring ways to work with one another, according to people familiar with their discussions. Their main goal is to reduce operating costs, these people say, and a substantial amount could be cut from both firms with an Intelsat purchase.
Rest of story: Liberty, EchoStar Plot Intelsat Bid - WSJ.com
Unusual Pairing of Rivals
Looking to Reduce Costs
By DENNIS K. BERMAN, ANDY PASZTOR, and DANA CIMILLUCA
June 14, 2007; Page A3
Liberty Media Corp. and EchoStar Communications Corp. are preparing a surprising joint offer for satellite-communications provider Intelsat Ltd., which is accepting final bids for its auction today, according to people familiar with the matter.
The pairing represents a bold cooperation between satellite-TV broadcaster EchoStar and media holding company Liberty, which is slated to take control of competing satellite-broadcaster DirecTV Group Inc. in the coming months. The two firms still could decide against making a formal bid.
Intelsat is expected to draw bids of $4.5 billion to more than $5.5 billion, according to people familiar with the auction. The company already supports about $11.5 billion in debt, put on the company after a series of mergers and one-time dividends paid to its group of four private-equity owners.
If it succeeds, the joint bid would create a highly unusual partnership between two strong-willed rivals who run satellite-to-home broadcast systems that currently compete with each other. But the two have been exploring ways to work with one another, according to people familiar with their discussions. Their main goal is to reduce operating costs, these people say, and a substantial amount could be cut from both firms with an Intelsat purchase.
Rest of story: Liberty, EchoStar Plot Intelsat Bid - WSJ.com
