Lowrance Cancels Sale to Orbital Sciences

Lowrance Electronics Inc., a maker of global positioning satellites, said it canceled a planned $27.5-million buyout by Orbital Sciences Corp. because Orbital’s bankers didn’t approve the agreement by the Thursday deadline. Orbital, which is losing money on a joint venture and restating quarterly results, has its credit lines frozen and required bankers’ approval for the purchase. Orbital couldn’t tell Lowrance when that approval would come, Lowrance spokesman Mark Wilmoth said. Orbital, the biggest maker of small satellites, agreed to buy Lowrance on March 12 in an all-stock offer now valued at $7.30 a share. Since then, the expected close had been pushed back more than once, and Orbital’s shares have fallen about 25%. Bankers wanted to see Orbital’s restated third-quarter results before approving the purchase. Orbital will continue trying to buy Lowrance, spokesman Barron Beneski said. Wilmoth said Lowrance remains for sale. Orbital, based in Dulles, Va., has been losing money on a data and messaging service venture with Canada’s Teleglobe Inc., which signed fewer subscribers than expected. Tulsa, Okla.-based Lowrance makes sonar products and satellite-mapping systems used in sport fishing and other outdoor activities, as well as aviation. Lowrance shares fell 88 cents to close at $5.44 on Nasdaq, while Orbital fell $1.19 to close at $14.75 on the New York Stock Exchange.