Loral snags AT&T's satellite system >BY BETH SNYDER, Associate Editor-News

Loral Space and Communications Ltd. snapped up AT&T's Skynet Satellite Services for $712.5 million in cash last week. The deal includes four geosynchronous satellites known as the Telstar series, two telecom control stations and a research and development facility. The acquisition would make Loral one of the world's largest satellite-based businesses, subject to regulatory approval.

AT&T officials said the sell-off is part of the carrier's strategy to take advantage of the newly deregulated telecommunications market by refocusing on its core businesses. The service has been growing steadily and is financially stable, said Bob Aquilina, vice president of product management for business markets at AT&T. The interexchange carrier plans to continue using the satellite services by becoming a customer of Loral, he said.

Loral met AT&T through its 51% majority interest held company, Space Systems/Loral, which is building Telstar 5 for deployment in the Skynet system and will also build Telstar 6.