Inmarsat stock price skyrockets after announcement of takeover bid

Shares in Inmarsat Plc jumped 16 per cent on Wednesday after Inmarsat said that it has received a cash takeover offer from a private equity-led consortium, a deal that would value the British satellite company at about $3.3 billion and take it private. The consortium, which initially included UK-based Apax Partners, U.S.-based Warburg Pincus and Canada Pension Plan Investment Board (CPPIB), was later also joined by Ontario Teachers' Pension Plan Board, Inmarsat said. "The proposal remains under discussion", Inmarsat said late on Tuesday.

Last year U.S. satellite group EchoStar Corp walked away from discussions to buy Inmarsat after it rejected a $3.25 billion cash and stock offer.

Inmarsat, a long established provider of communication services to shipping, sees a growing opportunity to supply in-flight broadband services to commercial aircraft. The consortium proposed a cash offer of $7.21, or 544 pence, for every Inmarsat share, a premium of 24 per cent to Inmarsat's Tuesday close of 437.8 pence and a 47 per cent premium to the price on Jan. 31.