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Centerbridge Partners Backs Away from $3.3 Billion Deal to Buy LightSquared

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A private equity group is reported to have backed away from an expected USD3.3 billion bid to buy USA based LightSquared following concerns about regulatory approval for the deal.

LightSquared, which was forced into bankruptcy protection after the telecoms regulator blocked its wholesale LTE network following complaints from GPS receiver manufacturers about interference, is now seeking a similar deal with other investors.

Last week it had been reported that the private equity group, Centerbridge Partners had reached a deal to buy the company and its valuable radio spectrum assets in a move that would have seen Dish Network denied its desire to buy the company.

The Centerbridge Partners deal was said to have been approved by several major backers of the company.

However, it is now said to have backed away from the deal at the last minute, although that could still mean the other partners in the deal it was heading could still put their own purchase offer together.

In addition to the USD3.3 billion purchase price, any buyer would also have to absorb around USD1.7 billion in liabilities. A deal would also need approval from the bankruptcy courts.

On the web: Wall Street Journal

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Tags: lightsquared  USA