Posted: Wed, Nov 19, 2003, 10:16 AM ET (1516 GMT)
A venture capital firm has agreed to acquire a majority stake in satellite communications company Globalstar after an earlier agreement to merge with rival ICO fell through. Thermo Capital Partners will take an 81.25% stake in Globalstar for $43 million, according to an agreement announced Tuesday. The remaining part of the company will be held by Globalstar's creditors, who will have the right in the future to increase their stake in the company to nearly 34%. Thermo had been selected in early April to buy two-thirds of Globalstar for up to $55 million, but Globalstar instead elected to take an offer by ICO to buy 54% of the company for the same amount. That deal unraveled in recent weeks, though, when ICO concluded that an unspecified condition of its investment agreement would not be satisfied. The new deal with Thermo must still be approved by the bankruptcy court that has been overseeing Globalstar since it filed for Chapter 11 protection in February 2002; a hearing is scheduled for Thursday.
