Loral Considering Relationships With Other Satellite Operators

Loral Space & Communications Ltd. is considering the possibility of a combination with another company, the sale of a major equity stake, or some other alliance to raise its sagging share price. Loral Chairman and CEO, Bernard Schwartz, revealed that talks are under way with Societe Europeenne des Satellites, and other companies, about a possible cash infusion or forging a strategic partnership. The goal of the continuing discussions with SES is "strategically linking up, [but] not necessarily merging, the [satellite] services parts" of the two firms. Loral is also holding exploratory talks with executives from a number of other satellite firms. The topics have ranged from a potential "merger of equals", the sharing of technology and the creation of a "special relationship" to foster cooperation in different regions. Acquiring or combining Loral's satellite-manufacturing operations with foreign or domestic competitors hasn't been a focus of discussion.

SES has been seeking a U.S partner or relationship. Loral's satellite fleet has a large U.S. market share. Merrill Lynch  noted “Loral's fixed satellite service assets (geostationary satellites with allocated orbital slots) are very attractive for regional ... players like SES Astra, GE Americom and Japan Satellite.’”
  

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