Having decided that it didn’t, after all want to acquire marginally profitable Communications Satellite Corp, Contel Corp, through its Contel ASC subsidiary, has instead decided to take over emphatic lossmaker Equatorial Communications Co, Mountain View, California. Contel will pay $4 a share cash, valuing Equatorial at $59.6m. Equatorial offers private satellite data networks for data broadcasting and interactive transaction processing. Martin Marietta Corp has 24% of the equity, warrants and other rights, and will get $12.6m cash, a $1.8m promissory note, and a $12.6m promissory note that is contingent on Marietta buying $45m of services from the merged firm over 10 years.
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