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Liberty Satellite Proposes Acquisition and Reverse Split
ENGLEWOOD, Colo. -- (OTCBB NEWSWIRE) -- August 17, 2001, Liberty Satellite & Technology, Inc. (LSATA: 2.30) has agreed with Liberty Media Corporation (NYSE: LMC) to acquire 100% of Ascent Entertainment Group, Inc., as well as Liberty Media's 89% ownership interest in Liberty Satellite LLC. LSATA will also complete a 1 for 5 reverse stock split of LSATA's Series A and Series B common stock, to increase the market price per share of our common stock and to position the Series A common stock to meet the minimum bid price requirement for listing on the Nasdaq National Market.
However, many issues that complete reverse splits in the name of achieving a broader market listing have seen their stock price plummet to and below pre-split levels.
In connection with the acquisition, LSATA will issue Liberty Media 340,000,000 shares of its Series B common stock in the combined transaction, expected to close in October 2001, subject to stockholder approval. After the close of the transaction, Liberty Media's equity ownership of LSAT will comprise approximately 84% of LSATA's outstanding shares.
Ascent Entertainment Group, through its majority-owned subsidiary On Command Corporation (Nasdaq: ONCO) operates the leading provider of interactive in-room entertainment, information and business services to the lodging industry. Liberty Satellite LLC has strategic ownership positions in ASTROLINK International LLC, Wildblue Communications, Inc., Aerocast.com, Inc., and the Sky Latin America DTH satellite platform, as well as investments in General Motors Class H common stock, Sprint PCS Group stock and XM Satellite Radio. LSAT is currently the managing member of Liberty Satellite LLC, with an approximate 11% ownership interest in the joint venture. Upon consummation of the proposed transaction with Liberty Media, LSAT will own 100% of the common equity of Liberty Satellite LLC.
The proposed transaction with Liberty Media and reverse stock split will be submitted for approval at LSAT's 2001 Annual Stockholders Meeting, currently expected to be held in October 2001.
At 9:43 EST, LSATA is higher by .23 (11%). Volume is 17,100.
