Inmarsat could be target for US groups, say analysts

Discussion in 'Market News' started by Lily, Aug 30, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    RBC look at prospects of Echostar or Dish making a move on satellite group

    Amid the summer lull, it’s time for a little speculative takeover talk.

    Analysts at RBC have been looking as satellite communication specialist Inmarsat and run the rule over the business as a possible bid target. In a new note, RBC’s Wilton Fry said:

    Given Inmarsat’s lower share price (especially in US dollar terms), rapid evolution of the industry’s competitive landscape, and historical precedents (e.g., Sky Terra approach in 2009), we believe it is appropriate to consider potential M&A activity. In this note we assess whether there is any rationale for Echostar, or Dish, to approach Inmarsat.

    Echostar and its sister company Dish Network have recently raised financing and Echostar now has around $3bn in cash on its balance sheet. This money is most likely to be used to fund new satellites at Echostar. However, there is a possibility, in our view, that Echostar or Dish may consider approaching Inmarsat given the compelling strategic and operational logic of a combination; as such, we believe this is a valid topic for investor debate.

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