Satellite bidding battle looms

INMARSAT looks set to be pounced upon by a French rival.

Eutelsat was considering making an offer for the £2.9bn British satellite group, it was announced yesterday.

Inmarsat shares soared on the revelation, closing up 4.3pc, or 26.2p, at 632.3p, putting the company third in the FTSE AllShare list.

It sets up a transatlantic bidding war for Inmarsat, with US satellite business Echostar possibly lining up a firm offer after an initial approach was rejected earlier this month as too cheap.

On Friday, Echostar disclosed a near 3pc shareholding in Inmarsat and a 10.4pc position in its bonds.

Founded in 1979, London-based Inmarsat was set up by the International Maritime Organization as a way for ships to stay in communication with shore.

Eutelsat, led by Rodolphe Belmer, provides satellite coverage across Europe, the Middle East, Africa, Asia and the Americas.