EchoStar (SATS) confirms that it made a proposal to acquire the entire issued and to be issued share capital of Inmarsat (IMASY).

The board of Inmarsat rejected the proposal and subsequently, on July 3, EchoStar presented a new and improved proposal which was rejected by Inmarsat on July 4. EchoStar continues, however, "to seek engagement with the board of Inmarsat on a constructive basis, with a view to agreeing the terms of a recommended transaction."

Under the terms of the improved proposal, Inmarsat shareholders would be entitled to receive 265 pence in cash and 0.0777 new shares of EchoStar Class A common stock for each Inmarsat share. Based on the closing price per share of EchoStar class A common stock on July 5 of $45.45, the improved proposal implies an equivalent value of 532 pence per Inmarsat share, valuing Inmarsat's existing issued share capital at approximately GBP 2.45B.

EchoStar believes a combination of EchoStar and Inmarsat is strategically compelling. The combined group would be one of the world's leading satellite providers and be well supported by a global portfolio of complementary assets and service offerings. EchoStar believes that the improved proposal "presents a compelling opportunity for Inmarsat's shareholders to realize certain value from their investment in Inmarsat while also participating meaningfully in the upside potential of the combined company."