A BERMUDA company may be about to become the largest player in the global satellite business. Intelsat Ltd. is considering the acquisition of Eutelsat, the fourth-largest company in the satellite business; the combined operation would be the world's largest.

Another buyer, PanAm Sat Corp. of Wilton, Connecticut, may be waiting in the wings, which could drive the acquisition price higher. It, too, would become the world's largest if it made a successful bid for Eutelsat.

Intelsat, the Bermuda company, has significant operations in Washington, DC. It recently shed its status as an intergovernmental organisation, and is focussed on enhancing its international presence.

The slump in the land-based telecommunications industry has been paralleled by similar problems in the satellite sector. In an industry suffering from overcapacity, consolidation usually follows. The likeliest candidate at present is Paris-based Eutelsat, another former intergovernmental organisation that went private last year.

Eutelsat's main shareholders, a group of European telecoms companies, are reportedly eager to sell their shares to reduce their debt levels.

Whoever buys Eutelsat would not only surpass Luxembourg-based SES Global SA as the world's top satellite operator, but would also gain an enviable foothold in the lucrative European market. Eutelsat, which had revenue of $676 million last year, broadcasts more than 850 TV channels and 530 radio channels around the world from 23 satellites. Eutelsat purchases satellites from two top European producers and buys launches from a European consortium, Ariane. If a Bermudian or American company were to take over a sector of the market, business could be affected.

Intelsat says buying Eutelsat would firm up its position in video broadcasting, complement its already strong offerings in data transmission and boost its hold in Europe.

Intelsat announced earlier this month that it would provide high-speed Internet connections via satellite in Europe, with access 10 times faster than dial-up.

Deutsche Telekom AG last week agreed to sell its 10.9 per cent stake in Eutelsat to Italian publishing house De Agostini for $214 million. The deal valued Eutelsat at $1.9 billion net.