& cplSiteName &

Inmarsat Rejects Lowball Takeover Bid by EchoStar

Ray Le Maistre

Satellite communications service provider Inmarsat has rejected a preliminary takeover offer by Charlie Ergen's EchoStar, the company announced late Friday.

The news followed market speculation that fuelled a double-digit hike in the satellite firm's share price. Inmarsat's stock gained 13.5% on the London Stock Exchange Friday to end the day at 474 pence, after which the company confirmed that it had "received a highly preliminary and indicative non-binding proposal from EchoStar."

It rejected the offer, the value of which has not been revealed, "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."

Now, to meet the stock exchange's rules, EchoStar Corp. LLC (Nasdaq: SATS) has until July 6 to make a firm and detailed takeover offer, or announce that it is no longer interested.

Now entering its fifth year, the 2020 Vision Executive Summit is an exclusive meeting of global CSP executives focused on navigating the disruptive forces at work in telecom today. Join us in Lisbon on December 4-6 to meet with fellow experts as we define the future of next-gen communications and how to make it profitable.

Inmarsat plc (London: ISAT), which provides communications services to the maritime, aviation, military and government sectors, reported first-quarter revenues of US$345.4 million and profit after tax of $53.6 million. It is guiding for steady growth in revenues, earnings and cashflow in the next five years, driven in part by its efforts to enable in-flight WiFi connectivity to airlines. (See Eurobites: Airline WiFi Scheme Set for Take-Off and Inmarsat, DT Launch WiFi-in-the-Sky Service.)

Inmarsat is regarded as ripe for acquisition as its share price has slumped during the past few years: Before Friday's hike, it had lost more than half of its value during the past 12 months and currently commands a market value of £2.15 billion ($2.88 billion).

EchoStar, which provides satellite-based broadband services through its Hughes division, reported first-quarter revenues of almost $502 million and a net loss of $21.2 million. Its share price edged won slightly, by 0.9%, to $47.06, giving the company a market value of about $4.5 billion.

— Ray Le Maistre, Editor-in-Chief, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Blogger
6/11/2018 | 4:53:34 PM
Further share price hike...
There's definitely expectation that a follow-up, bigger bid is coming down the pipe, from Echostar or even elsewhere  - Inmarsat's share price jumped another 11% Monday to 526 pence... 
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
T-Mobile to Play the Customer Care Card With Layer3 TV
Jeff Baumgartner, Senior Editor, Light Reading, 8/15/2018
Australia Could Open 5G Door to Huawei
Robert Clark, 8/16/2018
Video Navigation Gets an AI Assist
Jeff Baumgartner, Senior Editor, Light Reading, 8/16/2018
Eurobites: Deutsche Telekom Pulls Out of Iran
Iain Morris, International Editor, 8/17/2018
Animals with Phones
When Your Cat Hijacks Your Tech Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed