8th Jun 2018 16:57
LONDON (Alliance News) - Satellite operator Inmarsat PLC on Friday said it has received a preliminary merger proposal from US peer Echostar Corp, which was rejected by the company's board.
The company was responding to movement in its share price and reports of a takeover on the Financial Times' Alphaville blog. Shares in Inmarsat closed as the top performer on the FTSE 250 index at 473.90 pence each, up 13%.
"After carefully considering the proposal with its advisers the board rejected the proposal on the basis that it very significantly undervalued Inmarsat and its standalone prospects. The board remains highly confident in the independent strategy and prospects of Inmarsat," the company said, adding that there was no certainty over a formal offer from Echostar.
Echostar, which is based in the US state of Colorado and provides satellite communication solutions through its Hughes Network Systems and EchoStar Satellite Services business segments, has until July 6 to make a formal offer for Inmarsat, or walk away, under UK takeover rules.
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