Telesat owner Loral's board hires Perella to advise on sale-sources

NEW YORK, March 3 Mon Mar 3, 2014 3:45pm EST

NEW YORK, March 3 (Reuters) - Loral Space & Communications Inc has hired boutique investment bank Perella Weinberg Partners to advise its independent board of directors as it explores a potential sale of the company, people close to the matter said.

Reuters reported in January that Loral, which holds a majority stake in Canadian satellite communication services company Telesat Holdings Inc, is working with Credit Suisse Group AG to find a buyer.

Independent members of Loral's board separately hired Perella in recent weeks for any potential conflicts that may arise, as the company's top shareholder is playing a key role in the sale process, according to the people on Monday, who asked not to be named because the matter is not public.

Loral's biggest shareholder is hedge fund veteran Mark Rachesky's MHR Fund Management LLC, which held 38 percent of Loral's outstanding voting common stock as of December. Rachesky, who co-founded MHR in 1996 after working for activist investor Carl Icahn for six years, is seen as key to Loral accepting any takeover offer.

Representatives for Loral and Credit Suisse did not immediately respond to requests for comment. Perella declined to comment.

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