SES rises on Appaloosa letter about announced board changes

Shares in SES SESFd.PA rise 4.8% after its shareholder, U.S. hedge fund Appaloosa LP, published a letter in response to the European satellite group's board changes

Bernstein analyst Aleksander Peterc says Monday's share move is likely related to the letter

Appaloosa, which manages funds holding more than 7% of SES, says the steps SES board is taking to modernize its structure are "long-overdue" and adding a director with capital markets experience should be a priority for the group

In a note, Peterc says geopolitical shifts have significantly impacted Bernstein's valuation of SES and Eutelsat ETL.PA

"The new landscape repositions Eutelsat and SES as vital components of sovereign defence infrastructure, free from U.S. control and influence," the broker says

Eutelsat's shares are up 7.3% as of 0922 GMT

"In addition, SES continues to be supported by positive newsflow of further C-band spectrum sale, and both SES and Eutelsat are continuing to price in the seismic geopolitical change that makes suddenly Starlink the operator to avoid for European governments," Peterc adds

The SES stock has gained nearly 90% YTD