SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 16, 1997
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COMSAT Corporation
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(Exact name of Registrant as specified in Charter)
District of Columbia 1-4929 52-0781863
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(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification
Number)
6560 Rock Spring Drive, Bethesda, MD 20817
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code (301) 214-3000
Not Applicable.
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(Former name or former address, if changed since last report).
<PAGE>
Item 5. Other Events
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Attached to this report as Exhibit 99.1, and incorporated by reference
in this item, is a press release of the Corporation, distributed on May 16,
1997, announcing that the Corporation's Board of Directors has approved a
plan to distribute its 80.67% ownership interest in Ascent Entertainment
Group, Inc. to the Corporation's shareholders.
Item 7. Financial Statements and Exhibits
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(c) Exhibits (listed according to the number assigned in Item 601 of
Regulation S-K).
Exhibit No. Description
99.1 Press Release dated May 16, 1997.
<PAGE>
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
COMSAT Corporation
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By: /s/ Alan Korobov
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Alan Korobov
Controller
Date: May 19, 1997
<PAGE>
EXHIBIT INDEX
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Exhibit No. Description
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99.1 Press Release dated May 16, 1997.
FROM:COMSAT Corporation
6560 Rock Spring Drive
Bethesda, MD 20817
PHONE: 301 214 3442
FAX: 301 214 7130
DATE: May 16, 1997
For Immediate Release
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COMSAT BOARD APPROVES PLAN FOR TAX-FREE SPIN-OFF
OF ASCENT ENTERTAINMENT GROUP
-- Corporation Has Received Favorable IRS Ruling --
BETHESDA, Md. - COMSAT Corporation (NYSE:CQ) today announced that its
board of directors has approved a plan to distribute its 80.67% ownership
interest in Ascent Entertainment Group, Inc. (NASDAQ:GOAL) to its
shareholders through a tax-free dividend. The company has received a ruling
from the IRS that a spin- off would not be taxable to the corporation or
its shareholders.
"With this decision we have reached a major milestone in our strategic
plan to increase shareholder value by refocusing COMSAT on its core
international satellite services and digital networking services," said
Betty C. Alewine, president and chief executive officer of COMSAT.
"Operating as independent companies, both COMSAT and Ascent will be better
positioned to pursue their individual strategies more effectively."
Implementation of the spin-off plan is subject to the declaration of a
special dividend by the board of directors, any required consent of the
National Basketball Association and the National Hockey League, the
execution of intercompany agreements, and completion of changes in certain
employee benefit plans. The corporation anticipates that these conditions
will be satisfied by May 30, 1997, and that the dividend will be
distributed before the end of the second quarter.
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<PAGE>
Ascent Spin-off - Page 2
Some of the statements in this news release are forward-looking and
relate to anticipated future events. Forward-looking statements are based
on COMSAT management's current expectations and assumptions, which may be
affected by subsequent developments and business conditions, and
necessarily involve risks and uncertainties. Therefore, there can be no
assurance that future events will occur within the time frame anticipated
by management.
COMSAT Corporation is a global provider of international
communications services and products.
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CONTACT: Janet Dewar Vice President, Corporate Affairs (301) 214-3442
- -------- Gary Sharpe Director, Investor Relations (301) 214-3244
