8-K

 
                      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):  December 22, 1998

                              COMSAT Corporation
              (Exact name of Registrant as specified in Charter)


District of Columbia                   1-4929               52-0781863
(State or other                     (Commission       (IRS Employer
jurisdiction of incorporation)      File Number)      Identification Number)

6560 Rock Spring Drive, Bethesda MD 20817
(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code: (301) 214-3000

Not Applicable
(Former name or former address, if changed since last report).


Item 5.  Other Events
- -------  ------------

     On December 22, 1998, the Corporation issued a press release announcing
that the Corporation had reached an amicable resolution to a dispute with ICO
Global Communications (Holdings) Ltd.  A copy of the press release is attached
hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.   Financial Statements and Exhibits
- --------  ---------------------------------

(c)  Exhibits (listed according to the number assigned in Item 601 of 
     Regulation S-K).

Exhibit No.        Description

99.1               Press Release dated December 22, 1998

                                  SIGNATURES

          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


                         By:  /s/ Alan G. Korobov
                            -------------------------------
                            Alan G. Korobov
                            Controller

Date: December 23, 1998

 
                                 EXHIBIT INDEX

Exhibit No.        Description

99.1               Press Release dated December 22, 1998

EX-99.1

 
                                                                    Exhibit 99.1

For Immediate Release
- ---------------------

COMSAT REACHES AGREEMENT WITH ICO GLOBAL COMMUNICATIONS

BETHESDA, Md. -- COMSAT Corporation (NYSE: CQ) today announced an agreement with
ICO Global Communications (Holdings) Ltd. reflecting an amicable resolution to a
dispute between the two companies.  ICO Global Communications (Holdings) Ltd.
(ICO) is a development-stage company specializing in global mobile satellite
communications.  COMSAT was originally contracted to build and operate ICO's
Satellite Access Node in the United States (see ICO press release dated March 6,
1997).  Under the agreement, ICO paid COMSAT $4.5 million, and COMSAT will
transfer operation of the facility back to ICO.  In addition, the companies have
agreed that COMSAT will waive the non-exclusive distribution rights it received
under its 1995 stock subscription agreement with ICO.  COMSAT Corporation
directly holds approximately 1.6% of ICO common stock, and also indirectly holds
approximately 2.2% through its ownership in Inmarsat.  COMSAT's ownership in ICO
is not affected by this announcement.  COMSAT Corporation is a global provider
of satellite services and digital networking services and technology.


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CONTACT:

Susan Lewis Sallet, Vice President, Corporate Communications +1 301 214 3442
Gary Sharpe, Director, Investor Relations +1 301 214 3244