Canada-based MDA Space suffered a dramatic fall in its share price, down 16 per cent, because of reports that an important order for satellites to be built could be cancelled.

The order was announced back in February and involved a C$1.1 billion (€0.68bn) contract to build low Earth orbiting satellites for Globalstar.

The sell-off was prompted by a Bloomberg report which said that Globalstar was exploring a sale to Elon Musk’s SpaceX, which builds its own satellites.

One analyst said that the news was perceived as negative for MDA, given the potential for SpaceX to take Globalstar’s future satellite manufacturing in house in that scenario.

However, the reports are wholly unconfirmed. MDA said it was monitoring fluctuations in its share price that appeared to be the result of “unconfirmed and speculative media reports related to mergers and acquisitions in our customer base” although it added that it does not comment on market speculation.

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