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Lockheed Martin Corp. took another giant step toward swallowing up a competitor in the rapidly consolidating defense electronics industry by announcing plans for a $9.1 billion acquisition of the defense-related businesses of Loral Corp..
The transaction involves three key elements: Combining the two companies' defense electronics and system integration businesses; creating a spin off satellite and space company to be known as Loral Space & Communications Corp.; and giving Lockheed Martin a 20 percent stake in Loral Space for $344 million.
Lockheed Martin is pumping $9.1 billion into the deal, including the assumption of all $2.1 billion of Loral's debt. The buyer also will pay $7 billion, or $38 a share, to Loral shareholders, the companies said. A tender offer by Lockheed Martin was expected to reach the SEC by last Friday.
Aside from the $38 a share...