Monday, 30 May 2016
Last updated 2 days ago
Oct 5 2010 | 1:33pm ET
Philip Falcone's dream of a satellite empire ended today. His Harbinger Capital Management sold off more than half of its stake in British satellite company Inmarsat, ending the hedge fund's hopes for buying Inmarsat or striking a deal with the company to create a 4G giant to extend wireless coverage throughout the U.S.
Harbinger sold 14.1% of Inmarsat's stock for about £410 million. The New York-based hedge fund, which still owns 14% of the company, said it moved to cut its stake after deciding against a bid for all of Inmarsat.
"Inmarsat has been a terrific investment for Harbinger and its investors," Falcone said yesterday. "Although we have determined that we are not going to make an offer for all of the company, I remain a strong believer in Inmarsat's future and am extremely happy to maintain a core position in the company's stock."
Harbinger will have to maintain that core position for at least another six months, as part of its agreement with Credit Suisse and UBS, which handled the share placement.