SCIENCE / TECHNOLOGY : Loral Is Considering Selling 49% Interest in Ford Space Systems
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New York-based Loral Corp. officials have told securities analysts that the company is considering the sale of 49% interest of the Palo Alto Space Systems Division of Ford Aerospace Corp., which is based in Newport Beach.
If Loral follows through, the unit would become the second subsidiary of Ford Aerospace to be sold (or partially sold) since Loral agreed to buy the defense and communications subsidiary of Ford Motor Co. in August. Last week, Loral sold Ford Aerospace’s BDM International unit for $130 million to the Carlyle Group of Washington.
Elizabeth Allen, spokeswoman for Loral, said the company is considering a strategic alliance with an international firm to improve the competitive position of its Space Systems Division. The alliance could involve the sale of a minority interest in the division, she said.
Byron Callan, an analyst at Prudential Bache Research in New York, said he expects a space systems sale to garner $150 million for Loral. Interested European bidders include Aerospatiale of France, Matra S.A. of France, and British Aerospace, Callan said.
The Space Systems Division, which makes satellites, reported sales of $302 million for 1989.
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