Iridium sale seems on track despite economy

GHL Acquisition Corp’s impending purchase of satellite-services provider Iridium does not seem to be threatened by the dismal economic climate. 


Iridium Chief Executive Matt Desch, in a Dec. 4 e-mail in response to Space News questions, said Iridium’s continued growth and profitability as demonstrated by the first nine months of 2008 should reassure the prospective owners.

“Iridium is attractively valued and this will serve us in the transaction,” Desch said, adding that the movement in GHQ warrants should not be seen as a commentary on Iridium. “It’s premature to draw any conclusions about the deal by looking at the stock or warrant price at this time, in these market conditions,” he said. “[P]rices move around a lot right before the shareholder vote, and that’s probably not going to happen until at least the second quarter of 2009.”

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By Ocean Navigator