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By Pete Gallo
How different the world can look in a few years! When Stephen Feinberg's Cerberus Capital Management first took an interest in Herndon, Virginia-based satellite imaging company GeoEye in 2010, the company was poised to fly higher, thanks to multibillion-dollar funding promised by federal agencies, including the U.S. Department of Homeland Security.
GeoEye's stock, which traded at roughly $28.50 at the start of 2010, had spiked to above $40 per share by the start of 2011. That's perhaps no surprise, given that the company had anticipated splitting $7.5 billion in slated government projects over a 10-year span with its rival DigitalGlobe. The Longmont, Colorado-based satellite imaging specialist pioneered (and continues to provide) some of the technical undergirding of Google's popular mapping and satellite services used by everyday Internet users and motorists worldwide.
Feinberg's Cerberus was quick to spot the opportunity and became a major shareholder. Securities and Exchange Commission records show that by the start of the final quarter of 2010, Cerberus and its affiliate funds owned 1.8 million shares of GeoEye. SEC filings also show that GeoEye management credits Cerberus with providing the...