Report: Liberty, EchoStar Plan Intelsat Bid

The unlikely team seek to cut operating costs.
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Liberty Media (LINTA) and EchoStar Communications (ECHO) - Get Report are reportedly teaming up to submit a bid for satellite-communications provider Intelsat.

The Wall Street Journal

, citing people familiar with the matter, said Intelsat is expected to draw bids of $4.5 billion to $5.5 billion, though it didn't specify what Liberty and EchoStar may offer. Intelsat's private-equity owners have put the company up for auction, and bids are due Thursday.

A Liberty-EchoStar team is somewhat unconventional, because Liberty is in the process of taking control of EchoStar satellite-broadcast rival

DirecTV

(DTV)

. According to the

Journal

, the two companies believe acquiring Intelsat would help each substantially reduce operating costs.

Shares of Liberty Media Interactive, one of Liberty's tracking stocks, were up 25 cents, or 1%, to $25.06. EchoStar, which also was in the news because of a

partnership with wireless-broadband outfit

Clearwire

(CLWR)

, was up 52 cents, or 1.2%, to $45.45.