PARIS โ€” Commercial satellite operator Spacecom of Israel has rejected a takeover bid by SES of Luxembourg, saying its large rival is undercounting the value of Spacecomโ€™s business and proposing to leave Spacecom with a single satellite whose revenue would be insufficient to guarantee Spacecomโ€™s future.

In a Feb. 7 statement to the Tel Aviv Stock Exchange, Spacecom officials also said they would leave it up to individual shareholders whether to accept an unrelated offer from Eurocom of Israel, a Spacecom shareholder, to become the companyโ€™s dominant owner.

Eurocom, led by Shaul Elovitch, its chief executive, currently owns 22.8 percent of Spacecom and is proposing to purchase an additional 23 percent for 46.2 Israel New Shekels ($12.93) per share. That price represents a 26.9 percent premium over where Spacecom shares traded on Jan. 1, the day before the Eurocom offer, according to Spacecom.

โ€œEurocom did not detail its intentions for the company and thus the directors cannot determine the implications of the change in holdings on the company and its value,โ€ Spacecom said in its stock exchange filing, which Spacecom translated into English from the original Hebrew.

It is difficult to compare the Eurocom bid with SESโ€™s offer because the two are not assessing the same assets.

Spacecom operates the Amos-1 and Amos-2 satellites, both located at 4 degrees west longitude, a slot that can transfer traffic between North America and the Middle East. The Amos-3 spacecraft is scheduled for launch aboard the inaugural Land Launch rocket โ€“ a Sea Launch vehicle operated from Russiaโ€™s Baikonur Cosmodrome in Kazakhstan.

Amos-3 will replace Amos-1, which will be retired.

Spacecom also has a larger Amos-4 satellite on order from manufacturer and shareholder Israel Aerospace Industries. Scheduled for delivery in 2012, Amos-4 is to be operated from an undisclosed position between 64 degrees east and 76 degrees east longitude for better coverage of Central and South Asia.

The Israeli government is financing $265 million to pay for the construction and launch of Amos-4.

The government also will take most of the satelliteโ€™s capacity. Spacecom is responsible for the remaining $100 million but is not required to start making payments until 2010. It is unclear how much capacity will be available for commercial sale.

SESโ€™s bid for Spacecom is for the rights to its orbital slot, plus the Amos-2 and Amos-3 satellites and their current customers. The SES bid is contingent on Israel Aerospace Industriesโ€™ agreeing to continue its Spacecom agreements with SES. The document does not detail those agreements.

SES said it is not interested in taking ownership of Amos-4 and it proposes that Amos-4 be split off into a separate company over which SES would have no control.

SES said it values Spacecom at $350 million including the companyโ€™s debt, according to Spacecom. Removing the debt, and considering only those satellites and other assets that SES is targeting, SES concluded that Spacecom is worth $160 million.

Spacecom disputes SESโ€™s math. โ€œConcerning the companyโ€™s debts, including those related to Amos-3, and based on redemption of the companyโ€™s warrants at their face value, SESโ€™s offer shows an asset value of the companyโ€™s purchased operations at only around $100 million pre-tax, and not $160 million as SES wrote in its approach,โ€ the company said in its stock-exchange filing. โ€œIn the boardโ€™s opinion, this price does not reflect the companyโ€™s value, without Amos-4.โ€

Spacecomโ€™s board of directors also rejects the idea of splitting off Amos-4 from the other two satellites, saying Spacecom would have trouble surviving if it was left with only Amos-4. Letting SES take the 4-degree slot and the Amos-2 and Amos-3 business, it said, would โ€œdamage the development and growth of the company in the future, to the point of a riskโ€ to the companyโ€™s ability to stay in business.

SES spokesman Yves Feltes said Feb. 8 that the company would have no comment on the matter.

Spacecom reported 2007 revenue of $56 million and said its two operating satellites were 90 percent full.

Peter B. de Selding was the Paris bureau chief for SpaceNews.