Eutelsat's Soaring Shares Mark European Satellite Ambitions
France pledges $1.55 billion to Eutelsat, boosting Europe's competitive position against Starlink in the satellite industry. Talks with Britain regarding participation in Eutelsat's financial plans coincide with President Macron's visit to the UK. Despite growth, analysts question Eutelsat's competitive edge due to high leverage and financial needs.
Eutelsat, seen as Europe's satellite hope against Starlink, saw its shares surge after France's $1.55 billion injection announcement on Friday. President Emmanuel Macron emphasized the importance of investing in Eutelsat as a matter of European sovereignty to rival U.S. alternatives.
Amid this backdrop, France and Britain are in discussions about the UK's potential involvement in Eutelsat's rights issue. The announcement may coincide with Macron's upcoming state visit to the UK. Britain currently holds a 10.9% stake in Eutelsat.
Despite the positive market reaction and a 59.61% year-to-date increase in Eutelsat's stock, analysts like those from JP Morgan remain cautious, noting high medium-term leverage. Eutelsat's financial strategy includes a merger with OneWeb and plans for an extensive LEO satellite network.
(With inputs from agencies.)
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