Intelsat has warned that the sudden failure of its Americas-7 communications satellite on 28 November could have an impact on the planned $3.1 billion takeover by private equity group Zeus Holding. Zeus has the right to pull out of the sale, says Intelsat, but is expected to renegotiate the deal.
The deal is the latest in a series of satellite-operator buyouts by private-equity firms that is expected to lead to consolidation in an industry struggling with overcapacity. New Skies Satellites, an Intelsat spin-off now owned by the Blackstone Group, is looking to merge with another operator, and GS Capital Partners 2000, an investment partnership, has purchased UK communications provider BT's 15.8% stake in Eutelsat for £363 million ($675 million).
Source: Flight International