Inmarsat stock declines in London after Harbinger breaks off takeover talks

Shares in London-listed satellite network operator Inmarsat fell as much as 15 per cent today after it ended deal talks with Harbinger Capital Partners for a potential offer, though negotiations could start up again if the hedge fund can get the necessary regulatory approval.

The exact opposite had happened when news of Harbinger's interest in the company had sent its stock soaring 10 per cent in intra-day trading, after having lost 3.3 per cent prior to the announcement. (See: Hedge fund Harbinger makes multi-billion dollar bid for satellite operator Inmarsat)

In n a brief statement, Inmarsat said its talks with Harbinger had focused on regulation and that the hedge fund hadn't made an offer or indicated a potential price. "The Board of Inmarsat has therefore concluded that there is no merit in continuing discussions at this time," the group said.

Shares in Inmarsat fell 5.3 per cent in mid-morning London trading, having lost as much as 14.8 per cent earlier in the session.

Regulatory clearance may take as long as 18 months, Harbinger said today in a separate statement. The New York-based hedge fund is considering whether to pursue approvals, and if it obtains permission, it would resume talks with Inmarsat, Harbinger said.

"In light of this lengthy process, which could take up to 18 months, Harbinger does not consider it appropriate to make a firm offer for Inmarsat at this stage," the it said. "However, Harbinger remains interested in acquiring control of Inmarsat and is therefore actively considering whether to pursue the relevant regulatory and competition approvals.''

The fund said it would make a further announcement as soon as possible.