spacetoday.net: Companies back off from plans to acquire Eutelsat

Posted: Sun, Jan 26, 2003, 5:37 PM ET (2237 GMT)
US-based satellite communications companies Intelsat and PanAmSat have reportedly backed off from plans to acquire European operator Eutelsat, with one of the suitors blaming mixed signals from Eutelsat's shareholders. The Wall Street Journal first reported Friday that PanAmSat and Intelsat had broken off discussions with Eutelsat about a a possible acquisition, with both saying that Eutelsat would not provide access to the financial data required to perform due diligence. Both companies made separate offers of about $3 billion to acquire Paris-based Eutelsat, whose shareholders include several European telecommunications companies. PanAmSat CEO Joe Wright said later Friday that his company would not reenter negotiations until the positions of the various Eutelsat shareholders is clearer. Intelsat officials said they are interested in moving forward in negotiations but are not willing to "wait forever," according to the Washington Post.