Inmarsat has declined to accept Colorado-based EchoStar™s (Nasdaq: SATS) takeover bid, saying the offer œundervalued the U.K.-based satellite communications provider, Reuters reported Saturday.
œAfter 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, Inmarsat said in a statement.
œThe board remains highly confident in the independent strategy and prospects of Inmarsat,” the company added.
Reuters said the bid speculation resulted in a 13.5 percent increase in its shares Friday and brought its market capitalization to approximately $2.95 billion.
Bloomberg reported that Inmarsat called the bid œhighly preliminary and expects aviation services to drive growth in the next few years with plans to diversify into connected cars and other businesses.
