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Making it up

Which was pretty much my instant thought when I saw that the guys who run satellite communications provider Inmarsat (ISAT) are recommending a 546p-per-share cash offer for their company from private equity. After all, just eight months ago the very same directors in no uncertain terms told a would-be bidder to get stuffed. Now they welcome with open arms another who is offering just 2.6 per cent more.

Okay, as we’ll see, there’s a bit more to it than that. But, on the face of it, not much has changed. Back in July, Inmarsat’s bosses said that a putative £2.45bn cash-and-shares offer from EchoStar (US:SATS) “very significantly undervalues Inmarsat and its standalone prospects”, adding that “the board remains highly confident in the independent strategy and prospects of Inmarsat”. Now, all of a sudden, Inmarsat’s bosses have concluded that the risks of remaining independent outweigh the likely rewards.

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