SoftBank Said Near Quitting Intelsat Deal Over Bond Standoff

SoftBank Group Corp. is close to scrapping a plan to merge its OneWeb Ltd. with Intelsat SA if some of the Luxembourg-based satellite company’s bondholders continue to insist on a higher price, according to people familiar with the matter.

Intelsat extended a deadline for bondholders to approve the deal until May 15 without reaching an agreement, the company said Thursday. The situation is fluid and a deal could still be salvaged, but SoftBank has one and a half feet out the door, said one of the people, asking not to be identified because the matter is private. The Japanese company has been approached by multiple parties offering an alternative to Intelsat’s capabilities, though it will not pursue negotiations until the current talks are concluded, said the person.