3 U.S. Companies Will Bid for 60% Stake in Satelites Mexicanos

Hughes Electronics Corp., General Electric Co. and Loral Corp. plan to bid next month for 60% of Mexico’s Satelites Mexicanos system. Units of the three companies have qualified to bid for Satelites Mexicanos, whose three satellites cover most of North America and also Central America and part of South America, Mexico’s Communications and Transportation Ministry said.

Industrias Penoles, a Mexican silver-mining company that wants to diversify its operations, is also a bidder, the ministry said.

Satelites Mexicanos generates annual revenue of about $110 million. It also owns two operating centers and the right to launch and operate a fourth satellite.

The winner of the auction, to be announced on Nov. 7, will get an option to boost its stake in the system to 75%. Bidding groups are required to have a majority Mexican partner.

Loral’s Space & Communications division has taken a minority stake in a joint venture with Mexico’s Telefonica Autrey. GE’s American Communications Inc. and Los Angeles-based Hughes’ PanAmSat Corp. must find a majority Mexican partner by Sept. 22, officials said. Grupo Televisa, Mexico’s largest broadcaster, owns 8.5% of PanAmSat.