Geoeye Inc. Com (GEOY)

[johnsyn]

10:53 AM GeoEye (GEOY -25.5%) gets crushed after disclosing a government agency won't exercise a renewal option for a satellite imagery program, and is instead proposing less lucrative short-term contracts. In addition, the agency won't be providing cost share funding for an upcoming satellite launch. Benchmark is downgrading shares to Hold, and thinks GeoEye's 2013 bond payments are now at risk. JPMorgan thinks a buyout offer from rival DigitalGlobe (DGI -2.6%) is now more likely.