Calling planet Earth

8 October 2003 By Rob Cox Follow @rob1cox

The expiry of exclusive talks with Apax/Permira puts the future of the satellite group back into play. This may put Soros/Apollo back in the deal. They can win with a better offer not by unleashing their attack dogs in Washington.

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The battle for control of Inmarsat, the satellite communications network, took a new twist after exclusive negotiations with a private equity partnership between Permira and Apax Partners expired on Tuesday. The end of exclusive talks throws the auction for Inmarsat open again, giving a joint bid by Apollo Management and Soros Private Equity another chance to clinch its proposed $1.5bn proposed takeover.

The Apollo/Soros group raised its offer for Inmarsat after the company entered exclusive negotiations with Permira/Apax over its $1.42bn offer. Morgan Stanley is advising Inmarsat and its 86member shareholder consortium on the transaction.

The winning bidder will need to offer cash to shareholders as well as make promises regarding future capital expenditure and renegotiate the commercial agreements between Inmarsat – which is a wholesaler of satellite bandwidth – and the Land Earth Station Operators who actually manage relationships with customers.

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