The allure of space has always encouraged men to go boldly. Harbinger, a US hedge fund famous for betting big against subprime mortgage backed securities, seems similarly inspired. It is in the early stages of an approach toward the UK-based satellite communications company Inmarsat, of which it owns 29 per cent. There is no price on the table yet but the hedge fund must see value. What might investors (particularly the hedge funds that own another 30 per cent) have overlooked?

Inmarsat’s management is well respected, so is unlikely to have missed any obvious tricks. The stock has always been popular – typically trading on a prospective earnings multiple of 30 times or more. It is possible to squeeze a discounted cash flow valuation above the current £3bn enterprise value by more optimistic assumptions about prospects for new services – such as in-flight phone calls and e-mail – or on smaller capital expenditure bills. But to justify a hefty premium is tough.