Short Take: Globalstar to sell preferred stock

Globalstar Telecommunications plans to sell $350 million of convertible preferred stock with Loral Space & Communications buying $150 million of the offered stock. The company plans to use the proceeds to buy convertible preferred partnership interests in Globalstar. Globalstar in turn said it will use the proceeds to build its satelllite-based digital telecommunications system. Loral currently holds a 42 percent stake in Globalstar.