Shares in France’s Eutelsat slump after it confirms OneWeb merger talks

Almost 17% fall follows confirmation of discussions with UK satellite firm bailed out by government

Shares in Eutelsat have slumped nearly 17% after the French satellite company confirmed it was in merger talks with OneWeb, a British rival part-owned by the UK government.

Eutelsat said it was in discussions with OneWeb, which provides broadband coverage from space, to create a business that would be 50/50 owned by shareholders in both companies. The British government owns nearly 20% of OneWeb, while the French and Chinese governments hold stakes of 20% and 5% respectively in Eutelsat.