Europe's Biggest Satellite Company Eyes GE Americom

SPACEMART

GE-8 under construction at Lockheed Martin

London (AFP) March 5, 2001
Societe Europeenne des Satellites SA of Luxembourg is the front-runner to buy US General Electric Co's space satellite business for 4.5-5.0 billion dollars in cash and shares, the Wall Street Journal Europe reported on Monday, quoting people familiar with the negotiations.

The talks include the possible sale of a majority stake in the GE unit, GE American Communications Inc known as GE Americom, to SES, the report said.

Attempts to find a buyer for the GE unit were a sign of the consolidation drive in the satellite business as the industry is narrowing down to a handful of players, and GE must decide whether to invest more heavily or get out.

A deal between GE and SES would marry the strong North American presence of GE Americom, which has a fleet of 15 satellites, with the deep resources and financial strength of SES, the report said.

General Electric's financial arm, GE Capital, would maintain a large minority stake in the proposed joint venture and have board representation. However, SES would control the operations, it said.

The report said that while SES was the leading bidder and has had the most detailed discussions with GE, other potential suitors have appeared in the past few weeks and may top the proposal from SES.

Echostar Communications Corp, Loral Space and Communications Ltd and US-based satellite operator Intelsat have all had recent talks with GE, and Echostar seemed the most eager to strike a deal, according to one person close to the deliberations.

While GE and SES are in advanced discussions, they are still weeks away from clinching a deal, with several details, including a final price, still to be worked out, these people cautioned.

A full purchase of the GE unit by SES was not ruled out. Alternatively, the result could be some sort of joint venture, or the talks could fall through.

A spokesman for GE Capital declined to comment, the report said.

Spokesmen for SES and PanAmSat also declined to comment, and a spokeswoman for Echostar could not be reached, the newspaper said.

SPACEMART

European and US Satellite Makers Competing Head to Head

Los Angeles - Feb. 6, 2001
The Satellite Industry Association (SIA) has released details from a seven-month study that shows record losses in revenue, jobs and market share for California-based manufacturers of commercial satellites during 2000. Stiffer U.S. export controls and increasing competition from foreign competitors were cited as the major factors contributing to the decline.

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