Comsat, the satellite communications company that owns the
Nuggets and the Denver NHL team is ready to "spin off its
entertainment assets as a new subsidiary," according to James
Sterngold of the N.Y. TIMES.  Since the stock market has
"generally continued to treat the company like a staid
telecommunications utility" and not as an entertainment business,
Comsat "has decided to act" -- and some investors "may be warming
up to the company."  Comsat has hired Allen & Company to examine
the organization's structure which is expected to "mean the
creation of a subsidiary that is likely to be spun off at least
in part to shareholders before the end of the year."  The new
unit would likely be based in Denver.  Ivan Arteaga, analyst with
Gabelli & Co., said the spinoff is "a great idea.  There's a lot
more value in that stock."  Arteaga figures the company could
have a value as much as $50 a share if it "was sold privately."
Comsat closed yesterday on the NYSE at $23.125, and had a low of
$17.625 in mid-March (N.Y. TIMES, 8/4).  In Denver, Comsat
President Bruce Crockett: "There is an entertaiment frenzy going
on and we intend to act on it" (ROCKY MOUNTAIN NEWS, 8/4).
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Denver Nuggets, Franchises, NHL

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