The World: New York - Intelsat agrees to $3.2bn PanAmSat purchase

The satellite operator Intelsat has agreed to buy PanAmSat Holdings for $3.2 billion in a move that would create the world's biggest commercial satellite company.

With 20 of its 53 satellites primarily serving the US market, the deal will lead to the combined company controlling around two-thirds of the US's commercial satellite capacity.

Under the terms of the deal, PanAmSat shareholders will receive $25 a share - a 40 per cent increase on the company's initial public offering price five months ago. However, it is thought the move will come under intense scrutiny from the US regulators.