Satellite company DigitalGlobe Inc. on Sunday said its board had rejected a $792 million takeover bid from rival GeoEye Inc. because it undervalues the company.
DigitalGlobe, which collects satellite and aerial images that are used for defense and intelligence, mapping, environmental monitoring and other uses, said the bid was not in the best interest of the company's shareholders.
GeoEye on Friday had launched the $17 per share hostile bid for DigitalGlobe after holding talks with its target over several months.
DigitalGlobe said Sunday that it had rejected previous private bids, and that has it several times also proposed a deal. DigitalGlobe's offer would have it acquire GeoEye, with its shareholders owning 60 percent of the combined company and GeoEye shareholders 40 percent. The Longmont, Colo., company said GeoEye has rejected that offer.
GeoEye's $17 per share bid was a mix of cash and stock. GeoEye had said it could change the offer to be just cash or could increase the offer by including more stock.
GeoEye has a smaller market capitalization than DigitalGlobe, making it a somewhat unlikely acquirer, but it has higher revenue and is profitable.
DigitalGlobe has four satellites, and lost $27 million on $339.5 million in revenue last year.
GeoEye, based in Herndon, Va., has two satellites and had net income of $46.9 million on $356.4 million in revenue last year.