(Reuters) -Activist investor Carronade Capital Management is urging Viasat to split its broadband and defense units, the Financial Times reported on Thursday, citing people familiar with the matter.
Carronade, which holds a 2.3% stake in the satellite communications firm, plans to issue an open letter to the shareholders calling for defense unit to be spun off — a move it says could unlock as much as $11 billion in value for both businesses, the report said.
The investment firm estimates Viasat’s total valuation could rise more than 500% if the defense unit is separated, according to the report.
Carronade continues to build its stake in Viasat and also holds $30 million of the company’s debt, FT said.
Both Carronade and Viasat did not immediately respond to Reuters requests for comment.
(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)
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