The company's share price rose 3.1% by late afternoon.
Last week, Spacecom Satellite Communications Ltd. (TASE:SCC), controlled by Shaul Elovitch, reported a breakdown in the power supply of the Amos 5 communications satellite, which was liable to shorten its lifespan by 11 months. The TASE reacted badly to the news, and the company's share price fell 30%, reducing its market cap by almost NIS 400 million.
Today, Spacecom announced that it will be possible to operate the satellite's engines in alternative ways, bypassing the breakdown in the power supply. The satellite's lifespan will therefore not be shortened. The company's share price rose 3.1% by late afternoon, recouping part of the loss in value.
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
Hillel Koren and Ron Steinblatt