LDDS Communications Inc, the Jackson, Mississippi company that currently holds the title of America’s fourth largest long distance carrier – few companies have held it long – now has definitive agreement to buy Los Angeles-based satellite telecommunications services operator IDB Communications Group Inc. It will pay 0.450867 of an LDDS share for each IDB if LDDS shares are valued in the market at $22 or more; or a maximum of 0.520231 of an LDDS share for each IDB if LDDS shares are valued at $16 or less. The $195m in convertible subordinated notes issued by IDB will remain outstanding and the note holders will receive the corresponding exchange ratio adjustment to their share conversion price. The terms value IDB at about $895m. Separately, IDB said it would restate its first quarter figures to eliminate about $6m of pre-tax income, about $5m relating to a sale of transponder capacity and about $1m of which relates to purchase accounting adjustments.
