If there is one “Star” of the week on the stock exchange is EUTELSAT. The company of satellite communicationsafter a long torpor, which lasted years, he has imposed himself on public attention, for reasons that have to do with national security (Italian and European) and with the choices that governments will make in the defense. This is also the week in which the EU President Ursula von der Leyen has announced an imposing Plan for defense of the value of 800 billion Euro, in the face of the US disengagement from the war events of EU and Ukraine. It is in this situation that the eyes have fallen up EUTELSATmain, indeed unique Starlink competitor by Elon Musk. But who is Eutelsat? And why did the financial markets smell the deal?
The rebound from historic lows
EUTELSAT shares listed on Euronext Paris 6.9 euros are valid today And in recent days they have touched a maximum of 9 euros. The title is worth five times the price of a week ago, when the deal had not jumped to the eye of the operators.
EUTELSAT actions had touched the historical minimum last FridayFebruary 28, at 1.2 euros per share. After a long decline started in conjunction with the pandemic and then, from March 2022, to the outbreak of the war in Ukraine.
The performance of the title say long about the potential of this investment: the seven days performance It scores a +474%while the rise in the last month stands at +298%. Year to datethe title cumulated a progress of the +200%.
Who is Eutelsat
EUTELSAT is a European capital company largely private, checked mostly by speculative fundsEuropean leader in satellite communications with his 700 satelliteslargely in low orbit. This equipment makes it the Main (indeed unique) Starlink competitorthe Space Society of Elon Musk, which holds world leadership with a 10 -time satellite heritage.
What is more interesting to know is the story of Eutelsat, born as Italian-French Consortium In the public area, to explore the potential of satellite communications in unsuspected times. His current size, however, has been achieved in 2023 thanks to Fusion with the British OneWeb which brought hundreds of satellites.
Born as a public realityEutelsat fell under the cleaver of privatizations of the late 80sbeing almost sold off to private equity funds. The Italian government then thought it well to make cash, while the only public entity Still in the capital, through OneWeb is the British governmentwhich has a 10.9% share of the capital. The other shareholders are private, first the Indian Bharti Enterprise Indian Fundwith a share of 23.9%. Then the French private equity company BPIFrance Participations with 13.6% and U other British SB Investment Advisers (UK) fund with 10.9%.
The alternative to Starlink
Needless to say, Eutelsat has one today strategic position not indifferent, in a phase of rearmament of the European Unionwhich sees the technological autonomy and the safety of communications heavily at risk, while debating how to free yourself from addiction to the United States and the Trump-Musk duowhich is sober historical and strategic balances.
This is why alternatives are exploring, to manage strategic communications and for support the management of drones in Ukraine and in the area of the Black Sea. Also the Italian government seems to have questioned a contract of 1.5 billion euros (1.6 billion dollars) which was the processing of forming With Starlink, To manage its own equipment of satellites capable of guaranteeing encrypted and safe communications in every part of the world.
Confirmed contacts with Italy
According to the rumors leaked in the last few days, the Meloni government It would be increasingly in doubt whether to close the agreement with the Musk company, in the light of the recent US disengagement from European security. For this they would have been Start preliminary negotiations with Eutelsatwho confirmed the ongoing talks as part of a historic collaboration with Telespazio.
The CEO of Eutelsat Eva Berneke confirmed in Bloomberg who are in progress “Very positive interviews” with Italy for the supply of a safe satellite network. “The contacts we had with the government – said the manager in an interview – indicate that Italy needs a constellation of satellites and that it is evaluating the options”.
