A faulty satellite included in the $4.3bn (€3.5bn) private equity acquisition of PanAmSat, the satellite operator majority-owned by Rupert Murdoch's DirecTV, has knocked $200m off the purchase price.

Kohlberg Kravis Roberts, the US buy-out house, agreed to acquire 100% of Nasdaq-listed PanAmSat in April for $23.50 a share. The sale, arranged by Credit Suisse First Boston, included the assumption of $750m in debt giving an enterprise value of $4.3bn.