This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2018/jun/08/uks-inmarsat-rejects-takeover-approach-from-us-rival-echostar
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK's Inmarsat rejects takeover approach from US rival EchoStar | UK's Inmarsat rejects takeover approach from US rival EchoStar |
| (35 minutes later) | |
| Inmarsat, Britain’s leading satellite company, has rejected a bid approach from a US rival, in what could signal the start of a fresh foreign takeover saga. | |
| Responding to a 13.5% rise in its share price on Friday, Inmarsat admitted it had received an offer from Colorado-based EchoStar that it said “very significantly undervalued” the company and its prospects. | Responding to a 13.5% rise in its share price on Friday, Inmarsat admitted it had received an offer from Colorado-based EchoStar that it said “very significantly undervalued” the company and its prospects. |
| If EchoStar persists, Inmarsat is likely to become the focus of renewed concern about takeovers of leading British businesses, coming shortly after Melrose finally succeeded with its controversial £8bn pursuit of engineer GKN. | If EchoStar persists, Inmarsat is likely to become the focus of renewed concern about takeovers of leading British businesses, coming shortly after Melrose finally succeeded with its controversial £8bn pursuit of engineer GKN. |
| Like GKN, Inmarsat, which employs more than 1,500 people, has provided technology used by the British armed forces, although its largest single customer is the US military. | Like GKN, Inmarsat, which employs more than 1,500 people, has provided technology used by the British armed forces, although its largest single customer is the US military. |
| The London-based company, which has 13 communications satellites in orbit, provided satellite services to the Ministry of Defence to improve ground communications for soldiers fighting in Afghanistan. | The London-based company, which has 13 communications satellites in orbit, provided satellite services to the Ministry of Defence to improve ground communications for soldiers fighting in Afghanistan. |
| Its “groundbreaking” technology was used in the hunt for the missing Malaysia Airlines flight 370, which disappeared in 2014 and is believed to have crashed into the southern Indian Ocean. | Its “groundbreaking” technology was used in the hunt for the missing Malaysia Airlines flight 370, which disappeared in 2014 and is believed to have crashed into the southern Indian Ocean. |
| The firm has repeatedly won praise from the government thanks to its leadership position in the British space industry, excluding the Franco-German industrial group Airbus, which has sizeable operations in the UK but is French-owned. | The firm has repeatedly won praise from the government thanks to its leadership position in the British space industry, excluding the Franco-German industrial group Airbus, which has sizeable operations in the UK but is French-owned. |
| Former chancellor George Osborne praised Inmarsat in 2012 as he announced £1.2bn of funding over five years to increase Britain’s role in European space projects. | Former chancellor George Osborne praised Inmarsat in 2012 as he announced £1.2bn of funding over five years to increase Britain’s role in European space projects. |
| The UK’s place in the European Space Agency, which is working on the €10bn Galileo satellite navigation system, is now uncertain amid the ongoing Brexit negotiations. Inmarsat is also a world leader in several cutting-edge technologies such as mobile satellite communications and maritime and aviation safety, while it is among the largest providers of inflight internet for airlines. | The UK’s place in the European Space Agency, which is working on the €10bn Galileo satellite navigation system, is now uncertain amid the ongoing Brexit negotiations. Inmarsat is also a world leader in several cutting-edge technologies such as mobile satellite communications and maritime and aviation safety, while it is among the largest providers of inflight internet for airlines. |
| Its four Global Xpress satellites provide the world’s only global high-speed broadband operation, with a fifth satellite due to launch next year to increase capacity. It is also working with Germany’s Deutsche Telekom on the European Aviation Network, which will provide high-speed broadband to air passengers across the continent. | Its four Global Xpress satellites provide the world’s only global high-speed broadband operation, with a fifth satellite due to launch next year to increase capacity. It is also working with Germany’s Deutsche Telekom on the European Aviation Network, which will provide high-speed broadband to air passengers across the continent. |
| Despite Inmarsat’s leading position in several markets, New York-listed EchoStar is the larger company based on its stock market value of £3.4bn, compared with the UK firm’s £2.2bn after its stock market surge on Friday. | |
| EchoStar’s interest is likely to be fuelled in part by Inmarsat’s exposure to the US, given that the US military is the company’s largest single customer. | EchoStar’s interest is likely to be fuelled in part by Inmarsat’s exposure to the US, given that the US military is the company’s largest single customer. |
| But if the US firm persists with its bid, it could face political opposition similar to that seen during Melrose’s bid for GKN. A group of MPs urged the business secretary, Greg Clark, to block that deal on national security grounds. Security is one of the few reasons the government can prevent a takeover and the MPs cited fears that GKN could be broken up and sold to overseas buyers. | But if the US firm persists with its bid, it could face political opposition similar to that seen during Melrose’s bid for GKN. A group of MPs urged the business secretary, Greg Clark, to block that deal on national security grounds. Security is one of the few reasons the government can prevent a takeover and the MPs cited fears that GKN could be broken up and sold to overseas buyers. |
| If it is to stave off EchoStar’s interest, Inmarsat’s management – led by chief executive Rupert Pearce – will be reliant on the support of major shareholders, with whom it has been at loggerheads over pay. A revolt from more than 60% of voting investors earlier this year forced Inmarsat to rip up its pay proposals, continuing a long-running dispute that had broken out into rebellion three times in the past six years. | If it is to stave off EchoStar’s interest, Inmarsat’s management – led by chief executive Rupert Pearce – will be reliant on the support of major shareholders, with whom it has been at loggerheads over pay. A revolt from more than 60% of voting investors earlier this year forced Inmarsat to rip up its pay proposals, continuing a long-running dispute that had broken out into rebellion three times in the past six years. |
| Inmarsat | Inmarsat |
| US military | US military |
| Satellites | Satellites |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |