(Bloomberg) ? Bermuda-based Intelsat Ltd., the third-largest global satellite provider, said it may consider being acquired following an initial public offering of as much as $500 million.

Intelsat recently received preliminary "indications of interest" from possible acquirers or investors in the company, it said in a filing yesterday with the Securities and Exchange Commission related to the IPO. It wasn't more specific. The process has been suspended pending completion of the share offering by the end of June, Intelsat said.

Intelsat's move comes as PanAmSat Corp., the biggest US commercial satellite-operator, agreed this week to be acquired by leveraged buyout firm Kohlberg Kravis Roberts & Co. for $3.53 billion. Intelsat, which was founded in 1964 and transmitted video signals of the first moon walk in 1969, may be attractive for its cash flow, one analyst said.

"They're in a low-growth business which generates cash," said HSBC Securities analyst Thomas Egan. "Those businesses lately seem to be interesting to folks in the private-equity business."

Intelsat sells satellite capacity used by more than 600 customers, including AT&T Corp. and the US government, to transmit voice, video and data signals. It had cash flow, or earnings before interest, other income or expense, taxes, depreciation and amortisation, of $687.6 million last year.

Intelsat had net income of $181.1 million in 2003 on revenue of $952.8 million. PanAmSat had net income of $99.5 million on sales of $831 million last year. "After the completion of this offering, we may explore the possibility of another party's investment in, or acquisition of, our company," Pembroke-based Intelsat said in the filing.

Intelsat's 6.5 percent notes due in 2013 rose to 300 basis points, or hundredths of a percentage point, over comparable Treasury bonds since yesterday, traders said. Bonds of companies thought to be candidates for leveraged buyouts typically fall on investor concern the transaction will add more debt. In March, the company bought the North American satellites and customer contracts of Loral Space & Communications Corp. for $961.1 million.