Comsat Corp. plans to divest its 80.7% stake in Ascent
Entertainment Group, Owners of the Nuggets and Avalanche,
according to Steve Caulk of the ROCKY MOUNTAIN NEWS. In a
released statement, Comsat President & CEO Betty Alewine said
divestiture is in the "best interests" of both companies. She
added that the "pressure created on Comsat's balance sheet by
Ascent's need for capital to fund continued growth is
constraining" Comsat's ability to expand its international
telecommunications and ventures businesses" (ROCKY MOUNTAIN NEWS,
10/19). Comsat hired Morgan Stanley & Co. as financial advisor
for the divestiture, which could result in either a sale or
spinoff (Doug Abrahms, WASHINGTON TIMES, 10/19). Comsat reported
a third-quarter "swing" to net income and said it expects a
fourth-quarter loss "mainly based on Ascent." Separately, Ascent
reported a loss of $6M or 20 cents a share, compared with loss of
$13.8M, or 58 cents a share in '95 (Jonathan Welsh, WALL STREET
JOURNAL, 10/21). Financial difficulties experienced at Comsat
are reviewed in the current BUSINESS WEEK (Amy Barrett, BUSINESS
WEEK, 10/28 issue).
POTENTIAL BUYERS: Denver's KCNC-TV reported that Nike Chair
Phil Knight is interested in a deal that would give Nike a
"majority interest" in both the Nuggets and Avalanche (USA TODAY,
10/21). Stephen Keating of the DENVER POST reports a potential
buyer could be CO-based Liberty Media Corp. However, Liberty
President & CEO Peter Barton denies interest in the clubs.
Barton: "We view Ascent as an attractive group of assets.
However, due to business conflicts, it would not be appropriate
for us to seek to acquire any substantial interest" (DENVER POST,
10/19).
