Inmarsat PLC (LON:ISAT) shares came back down to earth today, falling after Eutelsat Communication SA said it does not intend to make an offer for the UK-listed firm, just a day after the French satellites group said it was considering making a bid.
In a statement, Eutelsat said that, following market rumours, it had made yesterday’s statement confirming that it was considering a possible offer for Inmarsat, at the request of the UK Panel on Takeovers and Mergers, without any certainty that an offer would be made.
READ: Inmarsat shares launched higher after French satellites firm Eutelsat says considering takeover move
But, the French firm, added, it does not intend to make an offer for Inmarsat and is now consequently, bound by the Takeover Code not to make a bid during the following six months except with the consent of the panel unless Inmarsat’s board agrees, or a third party announces a firm intention to make an offer.
Earlier this month, Inmarsat rejected a takeover approach from US-based EchoStar Corp (NASDAQ:SATS) which has been building a stake in the UK firm.
The FTSE 250-listed firm said it believed Echostar’s offer “significantly undervalued” the company. Inmarsat has made no comment on Eutelsat’s statements.
Having gained around 4.6% after the Eutelsat announcement yesterday, Inmarsat shares lost 5.2% at 599.6p in early morning trading today.