Satellite firm gets bid from hedge fund
Shares in satellite communications company Inmarsat rose as much as 13 per cent after confirming it had received an approach from its largest shareholder, US hedge fund Harbinger Capital Partners.
However, it’s unlikely to be a quick sale. Regulatory approval would most likely be needed from both European and American authorities before a firm offer is made – a process that could take between 12 to 18 months.
“No decision has been made regarding the merits or otherwise of a possible offer. A lengthy regulatory approval process would be required to effect an offer…and there can be no certainty that any possible offer or actual offer for Inmarsat will ultimately be made,” Harbinger said in a statement.
Inmarsat, worth £2.2bn, is Europe’s biggest satellite communications group. The stock closed 6 per cent higher at 524.5p.
Harbinger, which already owns a 28.2 per cent stake in Inmarsat, also has stakes in satellite companies MFV, its parent company SkyTerra Communications and Terrastar.
The bid is being spearheaded by Harbinger boss Philip Falcone, who netted $1.5bn last year after betting against the housing market.
Reports suggested Harbinger, which has $27bn (£13.5bn) of assets under management, has plans to merge its satellite holdings with Inmarsat, though the company denied to comment on its strategy. It has hired investment bank Merrill Lynch, which underwrote Inmarsat’s London flotation in 2005, to work on the deal.
Inmarsat has hired JP Morgan Cazenove and Perella Weinberg as advisers.