INMARSAT shareholders yesterday dramatically dropped their objections to a take-private deal on the day they were set to raise them in court.

A consortium led by Oaktree Capital was expected to try and block a $6bn (£4.6bn) offer made by hedge funds in the High Court yesterday.

Oaktree, Kite Lake Capital Management and Rubric Capital Management have built up stakes in the satellite giant since it accepted the bid. They argued that the price tag did not reflect the value set to come from a US project that looked set to gain approval from a US regulator this month.

However, yesterday they abandoned any move to block the private takeover from proceeding.

"Having considered our position carefully, we now no longer intend to raise objections to the scheme being sanctioned at the hearing," Oaktree said yesterday.

"It is a matter of regret that despite the fact that our objections were raised in ample time for a further shareholders' meeting — or the introduction of a contingent value rights instrument — neither of these things have happened," the firm said.

Oaktree added that it now "[acknowledged] the issue with either course being taken in light of the new statements the bidder made".

On Monday the private equity buyers ruled out upping their bid or extending the expiration date ahead of the High Court meeting.

Oaktree and its partners had hoped the Federal Communications Commission (FCC) might approve a deal between Inmarsat and Ligado to allow Ligado to use spectrum of radio frequencies to create a wireless network across the US.

However, the FCC has yet to approve the scheme.

(c) 2019 City A.M., source Newspaper