EchoStar drops $3.2bln bid for Inmarsat

LONDON: U.S. satellite group EchoStar dropped a $3.2 billion takeover approach for Inmarsat on Friday after failing with a late attempt to persuade the British company into talks.EchoStar, which is chaired by billionaire entrepreneur Charlie Ergen, said it would not table a formal offer for the UK satellite operator after the FTSE 250 company rejected a 532-pence-a-share cash and shares bid that valued its equity at about 2.45 billion pounds ($3.25 billion)

The announcement came less than half an hour before a 1700 London time (1600 GMT) deadline for EchoStar to either make a firm offer for Inmarsat or walk away.

“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,” the British company said in response to EchoStar’s withdrawal.

The UK’s Takeover Panel, which regulates merger and acquisition activity in Britain, had fixed a deadline for EchoStar after Inmarsat announced last month it had spurned a takeover approach from its U.S. rival at an undisclosed price.

With the deadline just hours away, EchoStar, whose founder Ergen was once a professional gambler, ramped up the pressure on Inmarsat by revealing on Friday morning it had made a second informal bid in private on July 3.

Inmarsat’s board had rejected the 532 pence-a-share approach the next day, EchoStar said earlier on Friday. Including Inmarsat’s convertible bonds, the proposal had valued the group as a whole at 3.2 billion pounds.