A planned $3.1 billion take-over of satellite operator Intelsat Ltd appeared in jeopardy on Monday after the company said an electrical problem had ruined one of its satellites. Bermuda-based Intelsat said private equity group Zeus Holdings Ltd had the right not to close its take-over if the satellite was lost.
Zeus, an investment vehicle formed by private equity firms Apax Partners, Permira, Apollo Management and Madison Dearborn Partners, was evaluating the impact of the satellite's failure, Intelsat said on Sunday.
It said an "electrical distribution anomaly" hit its Americas-7 satellite early on Sunday morning and it was working with manufacturer Space Systems/Loral to determine the cause of the problem.
The satellite, launched in September 1999, covered the United States, Canada, Central America and parts of South America. Intelsat said it had insured the equipment.