Let G and H be compact
groups. We study in this paper the space Bilσ=Bilσ(L∞(G), L∞(H)). That space
consists of all bounded bilinear functionals on L∞(G) × L∞(H) that are weak∗
continuous in each variable separately. We prove, among other things, that Bilσ is
isometrically isomorphic to a closed two-sided ideal in BM(G,H). In the case of
abelian G, H, we show that Bilσ does not have an approximate identity and
that G×H is dense in the maximal ideal space of Bilσ. Related results are
given.