Shares in Inmarsat fell more than 10 per cent after a French rival dropped plans to launch a takeover of the satellite communications firm less than 24 hours after announcing them.
Paris-based Eutelsat yesterday said it was not going to make a bid for the British business after it was asked to clarify its position by the UK Takeover Panel.
It said it was looking at making an offer on Monday, just days after US-based Echostar revealed it had built a 3 per cent stake in Inmarsat.
Paris-based Eutelsat yesterday said it was not going to make a bid for British business Inmarsat after it was asked to clarify its position by the UK Takeover Panel
The takeover talk had stoked investor hopes of a bidding war, sending Inmarsat’s shares higher on Monday.
But after Eutelsat walked away yesterday the British company’s stock sunk 12.5 per cent, or 79p, to 553.2p.
Inmarsat said earlier this month it had received a non-binding offer from Echostar, prompting speculation rival bids could emerge.
However, the London-based company rejected the initial takeover bid, saying it significantly undervalued the business.
‘The board remains highly confident in the independent strategy and prospects of Inmarsat,’ a spokesman added.
Echostar has until July 6 to make a firm offer for Inmarsat under UK takeover rules.
But analysts have predicted that other bidders could include satellite rivals such as SES and Viasat.