Lockheed’s Woes May Be Giving Comsat Cold Feet

Comsat Corp. on Friday postponed a shareholder vote on its proposed acquisition by aerospace giant Lockheed Martin Corp., a sign that Lockheed’s latest financial problems may be raising new obstacles for the deal.

The news comes just two days after Lockheed said it would post a second-quarter loss and lowered its profit expectations into 2000, causing its stock to drop nearly 15%, close to its 52-week low.

Comsat shareholders were scheduled to vote next week on the deal, which was valued at $2.7 billion when it was announced in September. The company said Friday that its board had voted to postpone the meeting until mid-August.

Comsat, which provides satellite-based telecommunications and other services, did not mention Lockheed’s recent results. It said its board delayed the meeting so that the acquisition would take place closer to when regulatory and legislative approvals for the deal are expected.

But others familiar with the situation said some Comsat shareholders are worried about Lockheed’s financial woes and falling stock, which has lowered the value of Lockheed’s acquisition of Comsat.

Terms of the acquisition call for Lockheed to buy 49% of Comsat for $45.50 a share in cash and to buy the remaining 51% in a one-for-one stock swap.

Lockheed shares closed unchanged at $34.06 on the New York Stock Exchange on Friday, down from a 52-week high of $56.75.

Comsat rose 75 cents to close at $29.75, also on the NYSE.

The deal requires antitrust clearance from the Justice Department, approval by the Federal Communications Commission and pending legislation in Congress.

Recent problems at Lockheed, including a series of failed satellite launches and delays in aircraft orders and deliveries, have added to worries that the deal will never succeed.

Lockheed, the world’s largest defense contractor, wants to buy Comsat to boost its new global telecommunications division, which it hopes to grow into a $1-billion-a-year unit by 2000.

On Friday, a Lockheed spokesperson and Comsat officials said they remain hopeful the deal will close by the end of the year or early next year.

“We remain firmly committed to the transaction and believe it’s in the best interests of all parties,” said Charles Manor, a Lockheed spokesman.