Intelsat Votes To Maintain U.S. Location

INTELSAT (International Telecommunications Satellite Organization) has decided that the privatized Intelsat service company will locate in the United States. Intelsat Ltd., a private international holding company and successor to INTELSAT, will be based in Bermuda. A wholly-owned service company, known as Intelsat, will be based at the current headquarters building in Washington, D.C. The majority of current employees and operations will remain in Washington, D.C., subject to conclusion of immigration relief for non-U.S. resident employees. This visa relief is a condition precedent to the privatization of INTELSAT.

In August the U.S. Federal Communications Commission agreed to authorize licenses for all current and planned satellites operating in the C- and Ku-bands, once INTELSAT is privatized. These licenses will be held by a related U.S.-based company called Intelsat LLC, a wholly-owned by Intelsat Ltd. of Bermuda. The U.K. will also serve as a back-up authorizing jurisdiction for the C- and Ku-band satellites, should the terms of the U.S. license approval be adversely affected prior to privatization. The U.K. was also indentified by INTELSAT as a second jurisdiction for Intelsat Ltd.'s orbital filings in the Ka-, V- and BSS-bands.

Privatization is planned to take place by 1 April 2001. An initial public offering of Intelsat Ltd. stock is expected to take place within one year of privatization. The INTELSAT Board of Governors has recommended that the initial board of Intelsat Ltd. serve a term of two years to be elected by current shareholders. The board would have 17 members, including up to eight from the current investor base, at least eight independent directors, and the CEO. Other recommendations include that Intelsat Ltd. adopt a fiduciary board structure with strict objectives, including: 1) meeting major stock exchange and business requirements; 2) maintaining adequate continuity; and 3) maintaining geographical diversity. These decisions, and a complete privatization plan, are expected to be approved by the INTELSAT Assembly of Parties in November. 
  

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