McCaw Group Said to Make Offer for Iridium

An investment group led by cellular telephone pioneer Craig McCaw is preparing a $600-million offer for bankrupt satellite telephone company Iridium, investors familiar with the proposal said. The offer will be made to Iridium’s banks. Motorola Inc., which owns about 18% of Iridium, plans to pay Iridium’s lenders about $250 million in cash and $50 million in Iridium’s five-year, 10% convertible notes as part of the proposal, investors said. The buyout would eliminate the interest of common shareholders, an investor said. McCaw’s bid for Iridium follows his $1.2-billion investment in November for rival ICO Global Communications Ltd., which also filed for Chapter 11 bankruptcy protection in August. The founder of the former McCaw Cellular Communications is putting together a satellite network to offer voice, data and Internet services, analysts have said. Iridium declined to comment, and officials at Eagle River Investments, McCaw’s private investment company, weren’t available. Motorola declined to comment. Washington-based Iridium filed for Chapter 11 bankruptcy protection after failing to attract enough subscribers to its 66-satellite global phone network.