Intelsat, the Washington-based satellite company that was formed by the privatisation of the intergovernmental satellite organisation, has offered to buy US rival PanAmSat for $25 per share in cash to create the worlds biggest satellite operator. The deal values PanAmSat at around US$3.2bn. The deal could be closed within the next six to 12 months.
The deal, which is reported to have the backing of the boards of both companies, is being seen by analysts as the start of consolidation in the satellite industry. There is currently significant over-capacity in the global satellite industry.
Both Intelsat and PanAmSat are members of the AIB.