UPDATE 2-Inmarsat’s LightSquared deal activated, shares up

* Inmarsat to receive $337.5 mln in series of payments

* Shares rise 5.5 pct

(Adds analyst reaction, updates shares)

By Sarah Young and Paul Sandle

LONDON, Aug 18 (BestGrowthStock) – British satellite firm Inmarsat
(ISA.L: ) said on Wednesday its U.S. peer LightSquared had
activated a spectrum co-operation agreement which would deliver
payments totalling $337.5 million, boosting Inmarsat’s shares.

Inmarsat, whose satellites provide voice, data and broadband
services to shipping and aircraft, said the agreement would
enable the companies to carve up their satellite spectrum over
North America more efficiently and allow LightSquared to start
4G services.

Shares in Inmarsat gained 5.5 percent to 723 pence by 1409
GMT, making the company the top riser on Britain’s blue chip
index (.FTSE: ).

Analyst Mark James at Liberum Capital said it was “very good
news” for Inmarsat, with Harbinger (HRG.N: ), the owner of
LightSquared, paying the British company the best part of $350
million. Adding in ongoing payments, less costs, the deal could
be worth 2.32 pounds a share, he said.

Andrew Entwistle at New Street Research, who has a neutral
rating on the stock, said LightSquared needed to do the deal
before the autumn to keep U.S. regulator the Federal
Communications Commission onside.

Inmarsat said it received an initial $81.25 million and
would receive further payments in instalments up to a total of
$337.5 million over the next three years.

Inmarsat said a second phase option would run until January
2013, under which the company would receive payments totalling
$115 million a year.

The deal was originally agreed in 2007 between Inmarsat and
SkyeTerra, before the latter was bought by Harbinger and
rebranded LightSquared.

Harbinger has a 28.2 percent stake in Inmarsat, and has
previously expressed an interest in acquiring the company.
(Editing by David Cowell)

UPDATE 2-Inmarsat’s LightSquared deal activated, shares up