Communications Satellite Corp is, not too surprisingly, determined to make its merger agreement with Contel Corp stick if at all possible. As we suggested in CI No 664, all the signs are that Contel had been looking for an excuse to walk away from the agreement, and Comsat clearly thinks so too. It describes Contel’s excuses for wanting to drop the agreement – the Federal Communications Commission’s challenge that Comsat made excess profits on regulated services in past years – as weak and hollow. Comsat chairman Irving Goldstein declares I don’t like them walking away because I don’t think they have a right to. If there’s any way I can get the deal back on track, I’m going to. In a letter to Contel, he adds that Comsat has devoted enormous resources to consummating the merger: the entire Comsat board is committed to ensuring these efforts aren’t wasted.
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