12 June 2018
| Natalie Bannerman
Inmarsat has confirmed that it has rejected an initial takeover offer from Charlie Ergen’s Echostar Corp.
The preliminary low ball offer was confirmed in a statement
to the London Stock Exchange, promoted by the recent press
speculation surrounding a possible deal. Following the market
speculation Inmarsat’s share price jumped up to
double digits gaining 13.5% on the London Stock Exchange Friday
8 June, to end the day at 474 pence per share.
In the statement, the satellite company confirmed that it
rejected the Echostar offer "on the basis that it very
significantly undervalued Inmarsat and its standalone
prospects" but that "The Board remains highly confident in the
independent strategy and prospects of Inmarsat."
the rules of the London Stock Exchange, Echostar now has
until July 6 to make a firm and detailed takeover offer, or
announce that it is no longer interested.
"There can be no certainty either that any firm offer will
be made or as to the terms on which any offer might be made,"
continued Inmarsat in the statement.
Many analysts are speculating that Brexit and the fact that
94% of Inmarsat’s business comes from overseas
might be at heart of why Echostar went in so low with their
offer. With some predicting that Inmarsat will need a second
bidder in the mix, before Echostar brings up its offer.
As the two continue to talk it out over the final sale
price, Inmarsat continues to push ahead with its initiative as
an independent entity.
Most recently, the company entered into a memorandum of
understanding with the Hellenic Space Agency (HSA) to
collaborate on research and the development of future
technology. Under the scope of the agreement the two
parties will collaborate on research and development
opportunities in space and ground segment technologies, as well
as a mutual exchange of data.
But the company leaves us on a cliff-hanger with the tease
of more saying: "A further announcement will be made in due
course as appropriate."
London Stock Exchange,