Newspaper article The Evening Standard (London, England)

Inmarsat Is Sent the Wrong Message about Its US Dream; MARKET ROUND-UP

Newspaper article The Evening Standard (London, England)

Inmarsat Is Sent the Wrong Message about Its US Dream; MARKET ROUND-UP

Article excerpt

Byline: Toby Green

IS Inmarsat's American dream turning into a nightmare? The mobile-phone satellites group fell to earth with a bump today after plans by its partner LightSquared to construct a high-speed wireless network across the United States were dealt a major blow.

The ambitious scheme, heavily backed by Philip Falcone's Harbinger Capital Partners, has come under attack from claims it will interfere with GPS systems such as those used by the military.

These fears crystallised late on Friday as advisers to the Federal Communications Commission (FCC) announced that their testing had shown LightSquared's systems would "cause harmful interference to many GPS receivers". The FCC has already given partial approval to the project but Light-Squared still needs the green light for commercial use and is believed to urgently need funding. With JPMorgan Cazenove's analysts warning the latest decision "increases the pressure" while adding that 100p of its 800p target price for Inmarsat is attributed to Light-Squared, the group plummeted 35.9p, or 8.55%, to 384.57p.

After Standard & Poor's finally decided to put France out of its misery and remove the country's triple-A credit rating on Friday, traders were bracing themselves for a tough start to the week.

Yet despite the ratings agency downgrading a number of other countries as well, while Moody's was today making cautious noises over France as well, the FTSE 100 only ended up easing back 10.46 points to 5626.18.

The banks were suffering, as Barclays brought its four-day winning stream to an end by slipping 3.65p to 197.58p.

Still, it was nothing compared with Carnival. The world's largest cruise company was adrift at the foot of the benchmark index following the tragic grounding of its Costa Concordia ship off the shore of Italy, with it plummeting 406p, or 18%, to 1840p.

Elsewhere on the Footsie, BAE Systems climbed 1.9p to 304.95p in the wake of The Independent on Sunday reporting that the defence giant has hired consultants to look over the prospects for its shipyards in Portsmouth and Glasgow. …

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