(Reuters) - Eutelsat Communication SA (ETL.PA) said on Tuesday it did not intend to make an offer for Inmarsat (ISA.L), a day after the French satellite group said it was considering going head-to-head with EchoStar in a battle for the British company.
Shares in Inmarsat fell more than 6 percent in early trade as investors’ hopes of a bidding battle receded, while Eutelsat’s stock gained 3 percent.
London-based Inmarsat, which provides satellite communications to shipping, aircraft and remote locations worldwide, said earlier this month that it had rejected a takeover approach from U.S. company EchoStar.
EchoStar has continued to build a stake in Inmarsat.
Reporting by Arathy S Nair in Bengaluru and Paul Sandle in London; editing by Bernard Orr and Jason Neely