Private equity barons trying to take Inmarsat (ISAT) private are facing a High Court legal challenge from hedge funds pushing for a higher price. A group of speculators has built stakes in the satellite operator since it agreed a $6bn (£4.5bn) take-private deal led by Apax Partners and Warburg Pincus in March. The group, led by Oaktree Capital, will urge the High Court not to approve the standard legal mechanism to finalise the deal, known as a scheme of arrangement. The challenge, first reported by The Sunday Telegraph, aims to force Apax and Warburg to up its offer to reflect potential income worth hundreds of millions of dollars from a separate venture, Ligado, which has sub-licensed radio frequencies from Inmarsat.
Insurer Hiscox Limited (DI) (HSX) looks set to crash out of the FTSE 100 this week, to be replaced by rejuvenated budget airline easyJet (EZJ). The Lloyd’s of London insurer, which has been hit by storm damage claims and fears over ballooning casualty payouts, is expected to be demoted from the leading index of listed companies on Wednesday. Its shares have dropped by 23% since the summer, including a fall early last month when it revealed it had set aside $165m (£125m) for claims from hurricane Dorian, which hit the Bahamas, and typhoons Faxai and Hagibis, which devastated Japan. The reshuffle by FTSE Russell, which compiles the index, is likely to see a return to the top tier for easyJet after a six-month absence.
