UK satellite services provider reiterates confidence in strategy
EchoStar has withdrawn its takeover bid for Inmarsat, after the UK satellite services provider rejected a formal offer from its US rival.
Late on Friday, EchoStar revealed that on 3 July it made a £5.32 (€6.02) per share bid for Inmarsat, valuing the company at around £3.2 billion. Inmarsat rejected the bid a day later.
EchoStar initially said it would continue to "seek engagement" with Inmarsat’s board in the hopes of doing a deal; however, later of Friday it formally gave up its pursuit.
"The board remains highly confident in the independent strategy and prospects of Inmarsat, given our track record, unique capabilities, differentiated market position and strong channels to market," Inmarsat said in a brief statement.
Following press speculation, Inmarsat revealed in a statement dated 8 June that it had received a preliminary, non-binding offer from EchoStar, one that it rebuffed on the grounds that it "significantly undervalued Inmarsat and its standalone prospects."
Following the disclosure, the UK’s M&A watchdog, the Takeover Panel, set a deadline for 4pm on Friday 6 July for EchoStar to make a formal offer for the company.