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It’s a good question. L-3 and Loral history is a little complicated. We can start with the fact that Loral Space & Communications (NASD:LORL) and L-3 Communications Holdings (NYSE:LLL) currently share the same address:

Loral Space & Communications Inc.
600 3rd Ave.
New York, NY 10016 -— Phone: 212-697-1105

L-3 Communications Holdings, Inc.
600 3rd Ave.
New York, NY 10016 -— Phone: 212-697-1111

L-3 :

In the early 1970s, Frank Lanza caught defense giant Lockheed’s eye by building Loral Corporation into an aerospace industry contender through acquisitions of smaller defense technology firms. Lockheed (now Lockheed Martin) eventually bought Loral in 1996 and made Lanza the head of defense electronics. Looking for more action, Lanza formed L-3 Communications Holdings in 1997 by convincing Lockheed Martin’s CEO to spin off a group of 10 communications technology units and put him at the helm. The operations were units from General Electric and Loral acquired by Lockheed Martin in 1993 and 1996, respectively.

In charge were two of the L’s in the L-3 name: 20-year Loral executives Lanza (chairman and CEO, by then old enough to retire) and Robert LaPenta (president and CFO). The third L stands for major backer Lehman Brothers. The company embarked on an acquisition binge (just as Loral had originally done) in 1997. L-3 targeted strapped independent companies and the potential noncore operations of large corporate mergers.

Much as he had at Loral, Lanza remained a hands-off executive, a surprising approach in a red tape-wrapped industry. As a result, L-3’s divisions developed an entrepreneurial freedom. In 1998 L-3 went public.

CEO Frank Lanza died suddenly in June 2006. Prior to his passing he had championed the idea of continuing to add to L-3’s product lines by acquiring niche technology companies and by adapting L-3’s defense technologies to commercial markets, primarily transportation and communications, which account for a quarter of sales.

Loral :

Loral was founded in 1948 by William Lorenz and Leon Alpert (”Lor” and “Al” in “Loral”), who created a conglomerate by buying companies such as a toymaker, a copper-wire business, and an industrial meter maker. Many of the acquisitions proved less than successful, and by the early 1970s the company was foundering. In 1972 Loral posted a $3 million loss, had defaulted on loans, and was threatened with delisting by the New York Stock Exchange. Then Bernard Schwartz stepped in.

Schwartz, former president of computer leasing company Leasco, came aboard as chairman and president, and within a year had the company back in the black by focusing on defense electronics systems.

Loral’s breakthrough came with a radar warning receiver for a fighter plane. Previously, a week-long rewiring was necessary for receivers to cope with new enemy signals. Using programmable software, Loral’s system took minutes.

Loral was among many defense contractors swept up in the General Accounting Office’s Operation Ill Wind investigation of defense procurements, and in 1989 executives pleaded guilty to three charges. Schwartz doubled Loral’s size in 1990 when he bought Ford Aerospace for $715 million.

In 1996 Lockheed Martin spent $9 billion to buy all but the satellite operations of Loral, which Schwartz held on to, creating Loral Space & Communications; he dedicated the company to building a global satellite network. After Loral launched a satellite that year on a Chinese rocket despite export controls and economic sanctions, the US Department of Justice (DoJ) began investigating whether the company unlawfully transferred military technology.

In 1999 Schwartz was exonerated of allegations that he used his hefty donations to the Democratic Party to curry White House favor to approve Loral’s export of satellite technology to China. However, the investigation into whether the company violated export controls continued.

Early in 2002 Loral agreed to a “no contest” civil settlement with the DoJ to the tune of $14 million; the agreement allows Loral to resume selling satellites and technology to China.

in July 2003 Loral filed for bankruptcy. The same year Loral wrote off its 49% stake in Satelites Mexicanos, S.A. de C.V. (Satmex), which — in default on its financing arrangements — ceased paying interest on its unsecured debt. In 2004, as part of its restructuring agreement, Loral completed the sale of six of its satellites to Intelsat. Loral emerged from bankruptcy protection in 2005.

Having seen the company through its reorganization, Schwartz retired effective March 1, 2006.