Eutelsat said it is considering making a takeover bid for rival satellite operator Inmarsat, according Telecompaper. The company did not comment on the possible value or terms of the bid, saying only that it "notes the recent speculation and confirms that it is currently evaluating a possible offer for Inmarsat".
The announcement follows Inmarsat rejecting a takeover bid from Echostar earlier this month. Without giving any financial details, Inmarsat said the offer “very significantly” undervalued the company and its standalone prospects. The company added that it remains highly confident in its independent strategy and prospects.
London-based Inmarsat's share price has risen significantly since the takeover speculation started, to over GBP 600 per share from around GBP 350 in late May. The price had fallen from more than twice that a year ago, as profits fell and the company was forced to cut its dividend in order to invest more in growing new services over its Global Xpress platform. Paris-based Eutelsat has also been struggling to restore growth and a merger with Inmarsat could help it reduce its reliance on the TV market and expand in new growth areas such as in-flight connectivity.
