Inmarsat rejects bid from rival Echostar
The group confirmed that it received a ‘highly preliminary’ proposal from the US firm.
Satellite firm Inmarsat has come clean over a takeover approach from rival Echostar Corporation.
In an announcement made shortly after the market closed on Friday, the group confirmed that it received a “highly preliminary and indicative non-binding proposal” from the US firm.
“The board of Inmarsat notes today’s recent press speculation and movement in its share price and confirms that it received a highly preliminary and indicative non-binding proposal from Echostar Corporation in relation to the potential acquisition of the entire issued, and to be issued, share capital of Inmarsat,” the firm said.
However, the group added that after carefully considering the proposal with its advisers, the board rejected it on the basis that it “very significantly” undervalued Inmarsat and its standalone prospects.
“The board remains highly confident in the independent strategy and prospects of Inmarsat,” it said.
Inmarsat shares surged from 417p to as high as 470p, or 13%, on Friday as speculation mounted over a bid.
Echostar describes itself as a “global provider of satellite communication solutions”.
While no details of the bid were given, Inmarsat has a market cap of around £2 billion.