June 1 Satellite operator Intelsat SA said
it expected its $14 billion merger with peer OneWeb Ltd, which
is backed by Japan's SoftBank Group Corp, to fall
through as it failed to get enough of its creditors to back the
The U.S. satellite startup and debt-laden Intelsat had
agreed to merge in a share-for-share deal in February.
SoftBank in February also offered to buy voting and
non-voting shares in the combined company for $1.7 billion in
cash and take a 39.9 percent voting stake.
The merger and SoftBank's investment were both conditional
on approval from Intelsat's bondholders.
Intelsat said on Thursday it had terminated a series of debt
swap offers tied to the deal as its creditors did not accept the
terms by May 31 deadline.
"There were many stakeholders' interests that needed to be
satisfied in this complex transaction," Intelsat Chief Executive
Stephen Spengler said in a statement.
Reuters had reported on Wednesday that SoftBank would let
the merger drop.
Intelsat's shares had fallen nearly 48 percent since the
merger was announced in February.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Anil