Inmarsat leaps on bid approach

LONDON (Reuters) - Inmarsat (ISA.L) announced a bid approach from major shareholder Harbinger, sending shares in the satellite communications company up 13 percent to value it at 2.56 billion pounds.

Inmarsat said on Monday talks over the approach from U.S. hedge fund Harbinger Capital Partners, which already has 28.2 percent of the company, were at an early stage and there was no certainty of an offer.

Separately, Harbinger said in a statement: "No decision has been made regarding the merits or otherwise of a possible offer. Furthermore, a lengthy regulatory approval process would be required to effect an offer."

At 12:45 p.m., Inmarsat shares were up 6.9 percent at 529 pence, down from an earlier high at 557.5 pence.

The Wall Street Journal Europe newspaper reported on Monday that Harbinger, which would merge its satellite holdings with Inmarsat, had hired Merrill Lynch, which underwrote Inmarsat's 2005 initial public offering.

On May 8, Inmarsat reported first-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.0 percent to $103.6 million on revenue up 5.0 percent to $147.9 million in the three months to end-March.

(Reporting by Dan Lalor and Mark Potter; Editing by Quentin Bryar)