Last week EchoStar of Denver made an unsolicited bid for London-based Inmarsat. Inmarsat said the terms on offer “very significantly” undervalued the business. Inmarsat added, not unsurprisingly, that it remained highly confident in its strategy and future prospects, which is – no doubt – precisely why EchoStar made its bid.
A year ago Inmarsat’s share price was around £8.16 a share, and last week following a week-long rise the share price was just £4.60. No wonder EchoStar’s founder Charlie Ergen sniffed out a bargain-basement opportunity. A month ago, in mid-May, the price was £3.60.