Telesat Said to Draw Buyout Interest as Intelsat Backs Away
Telesat Holdings Inc., the Canadian satellite company, may get joint offers from private equity firms, while Intelsat SA is likely to drop out of the bidding, said three people with knowledge of the matter.
KKR & Co., Blackstone Group LP (BX) and Providence Equity Partners Inc. are bidding as a group, said one of the people, who declined to be identified because the talks are private. Offers are due in the next two weeks, the person said. Carlyle Group is also planning to bid with partners, one person said.
Telesat, based in Ottawa, is co-owned by New York-based Loral Space & Communications Inc. (LORL) and Canada’s Public Sector Pension Investment Board. The owners are seeking at least $6 billion, one of the people said. It’s unclear if there are other bidders aside from the private equity firms.
Intelsat, the world’s second-largest fixed satellite operator, is concerned that a purchase of Telesat, the fourth- largest satellite company, would get hung up by regulators, the person said. Intelsat is owned by BC Partners Ltd. and Silver Lake. The company had expressed initial interest in acquiring Telesat for $6 billion to $7 billion and was one of the first parties to contact the company, the people said.
Wendy Lewis, a spokeswoman for Loral, declined to comment. Representatives from the private equity firms also declined to comment.