U.S. Satellite Firms Bid for Foreign Rival

Two U.S. satellite companies could be on the verge of a bidding war for a leading European rival. Both planned to submit takeover offers worth about $3 billion by today, a source close to the negotiations said.

The takeover target is Paris-based Eutelsat, which broadcasts more than 1,000 television channels around the world.

The first potential suitor to step forward this week was Washington-based Intelsat Ltd., which said it wanted to complement its strengths in data transmission.

Several published reports have said PanAmSat Corp., based in Wilton, Conn., would make an offer for Eutelsat. PanAmSat Chief Executive Joseph Wright said Thursday that his company would meet the bid deadline Eutelsat set for today.

A source close to the negotiations said PanAmSat was trying to assemble a European consortium, while Intelsat wanted a straightforward acquisition.