ZEE TV'S CHANDRA & CRAIG MCCAW STRIKE JOINT ICO DEAL

Zee TV chairman Subhash Chandra is spreading his wings far and wide. Chandra last week announced that he would join hands - rather than compete- with US telecom mughal Craig McCaw in the revival of satellite telephony company, ICO Global Communications. The total bailout package: $1.2 billion. McCaw is scheduled to contribute 62% of the equity required to rescue the bankrupt firm while Chandra will pitch in with the rest. Initially, the duo will be investing $500 million, with Chandra chipping in with $190 million. McCaw and associates also committed to pump in another $700 million by the second quarter of 2000.

A bankruptcy court in Wilmington, Delaware, has cleared the revival package. A key question is: how will Chandra raise the funding he needs? A local newspaper has reported that a consortium of financial companies and investors are backing his bid. There is no doubt that Chandra today has a high valuation: estimates are that his 70% plus stake in Zee Telefilm values him in excess of Rs 100,000 million.

Meanwhile, a local newspaper reported today that both McCaw and Chandra were believed to be cobbling together an arrangement to revive the other limping satellite telephony company Iridium. A proposal is expected to be made before 15 December.

The Zee share continued to do well nearly touching Rs 7,000 per share on news of a share split in a 1:10 ratio.