(Bloomberg) -- Eutelsat SA rejected a takeover bid from billionaire Patrick Drahi that valued the satellite operator at 2.8 billion euros ($3.2 billion), the Paris-based company said Thursday.
The offer, worth 12.10 euros per share, was rejected unanimously by Eutelsat's management, the company said in a statement, confirming a Bloomberg report. Eutelsat shares soared 16% in Paris to almost match the offer price.
Analysts have been expecting consolidation in the satellite industry, with some pointing to a potential tie-up between Eutelsat, which is 20% owned by French state investment firm BPIFrance SA, and Luxembourg-based SES SA.
“Eutelsat has been in value territory for some time, but its candidacy for acquisition was far better suited to in-market consolidation,” said Jefferies analyst Giles Thorne in a note to clients late Wednesday, noting a crowd of short sellers could now be squeezed by the higher price.
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