British satellite company Inmarsat is in talks with private equity firms Apax Partners and Warburg Pincus over a buyout deal.
The firms, which were joined by Canada Pension Plan Investment Board, have proposed to make a cash offer of $7.21 (£5.43) per Inmarsat share, the company announced today, which would value Inmarsat at about $3.3bn.
Inmarsat confirmed it is in discussions with the consortium regarding the proposal but did not make the terms of the potential offer public.
The consortium is required to either announce its intention to make a formal offer by 16 April or abandon the proposal.
Shares in the London-listed firm rose by 1.38 per cent following the announcement.
Private equity firms Apax and Permira bought a majority stake in Inmarsat in 2003 before floating the company two years later.
Read more: Satellite firm Inmarsat shares fall
The potential takeover comes after US rival Echostar ditched its plan to buy Inmarsat after its £3.2bn offer was rejected by the firm.
Earlier this month the London-headquartered company reported that it had increased revenue by 5.3 per cent to $1.46bn last year, driven by demand for in-flight broadband.