Shares of Canadian satellite manufacturer MDA Space fell nearly 16 percent Thursday following reports that client Globalstar may be in talks to sell to Elon Musk’s SpaceX. Analysts warned a deal could jeopardize MDA’s $1.1-billion contract to build Globalstar’s low-Earth-orbit satellites, as SpaceX manufactures its own hardware.
MDA said it is monitoring market speculation but does not comment on rumours. The company’s stock closed below $29 on the Toronto exchange. The drop follows a 25-percent decline in September when EchoStar cancelled a $1.8-billion contract after selling spectrum to SpaceX.
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