Centerbridge abandons LightSquared deal
18 December 2013 |
Private equity firm Centerbridge has abandoned plans to acquire wireless telecoms group LightSquared, Reuters reports.
The retracted bid reportedly follows uncertainty over when federal regulators would allow LightSquared to deploy its wireless network.
Centerbridge had provisionally offered $3.3 billion for the wireless company, and was prepared to assume around $1.7 billion in various liabilities, but has now walked away from the deal due to “economic and non-economic reasons”, a LightSquared lawyer told local reporters.
The private equity firm was reportedly concerned that it would have to spend out a huge amount of money while waiting for approval from regulators for LightSquared’s national wireless network roll-out.
LightSquared has been struggling with bankruptcy since 2012 and Centerbridge’s offer last week seemingly pushed Dish Network – which has also been bidding to acquire the company – out of the running.
As yet it is unclear whether Dish, or any other investors, will pursue a bid for the company.
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