July 31 (Reuters) - Activist investor Carronade Capital

Management is urging Viasat ( VSAT ) to split its broadband and

defense units, the Financial Times reported on Thursday, citing

people familiar with the matter.

Carronade, which holds a 2.3% stake in the satellite

communications firm, plans to issue an open letter to the

shareholders calling for defense unit to be spun off - a move it

says could unlock as much as $11 billion in value for both

businesses, the report said.

The investment firm estimates Viasat's ( VSAT ) total valuation

could rise more than 500% if the defense unit is separated,

according to the report.

Carronade continues to build its stake in Viasat ( VSAT ) and

also holds $30 million of the company's debt, FT said.

Both Carronade and Viasat ( VSAT ) did not immediately respond to

Reuters requests for comment.