The pace of space industry restructuring has quickened on both sides of the Atlantic as two leading multinationals have sought to focus on core businesses.
Two major proposals were floated last week as auto manufacturer General Motors opened talks to dispose of its Hughes Electronics satellite operation and French defence and aerospace electronics giant Thales offloaded its Alcatel Space holdings. Both deals remain subject to regulatory scrutiny.
Paris-based Alcatel will acquire the 48.83% stake in Alcatel Space held by Thales, bringing its total participation to 100%. GM is in negotiation with media giant News Corp to sell its 33% interest in Hughes Electronics.
The price of the Thales agreement is valued at €795 million ($696.5 million), to be paid half in cash and half in Thales shares. This reduces Alcatel's stake in Thales from 25.3% to 20%.
GM purchased Hughes Aircraft in the 1980s for $5.9 billion but has gradually disposed of elements of its subsidiary, including the defence-oriented electronics division to Raytheon and the satellites building arm of Hughes Electronics to Boeing. News Corp is believed to be pursuing Hughes Electronics as part of a drive to expand its satellite operations. Hughes owns the DirecTV broadcast operation. It purchased a controlling interest in Panamsat in 1998 and acquired United States Satellite Broadcasting in 1999.
The possible Hughes/News Corp tie-up follows the purchase of GE Americom by Luxembourg-based Société Européene des Satellites.
Source: Flight International
