British Satellite Co. The Centerpiece Of Harbinger’s Pie-In-The-Sky

Jul 25 2008 | 7:16am ET

Alabama-based hedge fund Harbinger Capital Partners has global ambitions for satellite communications company SkyTerra.

Harbinger, which along with an affiliate owns 48% of SkyTerra, announced plans to buy British satellite company Inmarsat and combine it with SkyTerra. The hedge fund, which owns 28% of Inmarsat, said it will take between 12 and 18 months to get the necessary regulatory approvals.

Terms of the potential offer were not disclosed.

SkyTerra said that Harbinger would provide $500 million in debt financing to fund its business plan through 2010, and might buy as much as $2.4 billion in new shares to help finance the Inmarsat acquisition, which is currently valued at about US$4.4 billion.

“The combination of SkyTerra and Inmarsat, assuming financial terms can be reached, makes a great deal of strategic and operational sense,” Alexander Good, CEO of SkyTerra, said.

Inmarsat was somewhat more reserved in its response, saying that, though confident of its ability to remain independent, it would consider any offer.

 


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of