July 21 (Bloomberg) -- Inmarsat Plc, a U.K. satellite company that provides communications services, said talks with Harbinger Capital Partners about a potential takeover have ended.

Harbinger, the New York-based hedge fund that owns 28 percent of Inmarsat, said it's still interested in buying control of Inmarsat if regulatory and competition approvals can be obtained.

The discussions focused on the regulatory process surrounding a possible offer, Inmarsat said today in a Regulatory News Service statement. Harbinger didn't make an offer for the company or indicate a potential offer price, and Inmarsat's board ``has therefore concluded that there is no merit in continuing discussions at this time,'' according to the statement.

Inmarsat dropped 66 pence, or 13 percent, to 446.5 pence as of 8:11 a.m. in London trading. Before today, the shares had fallen 5.6 percent, giving it a market value of 2.34 billion pounds ($4.7 billion). On July 2, the stock jumped the most in more than six months after Inmarsat said Harbinger approached it about a takeover.

Regulatory clearance may take as long as 18 months, Harbinger said today in a separate statement. The New York-based hedge fund is considering whether to pursue approvals, and if it obtains permission, it would resume talks with Inmarsat, Harbinger said.

Harbinger, run by Philip Falcone, buys stakes in companies, then seeks changes in those it considers are underperforming or making strategic errors. The fund has sought to replace directors at New York Times Co. and Ryerson Inc.

Harbinger is the largest shareholder in Reston, Virginia- based TerreStar Corp., which is building a network of satellites and mobile phone towers. Harbinger owns 30 percent of TerreStar, according to data compiled by Bloomberg. Harbinger also owns 49.9 percent of SkyTerra Communications Inc., which owns Mobile Satellite Ventures LP.

To contact the reporter on this story: Phil Serafino in Paris at pserafino@bloomberg.net

Last Updated: July 21, 2008 03:12 EDT