[Swprograms] Fwd: SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY

[David Goren <dbgoren@xxxxxxxxx>]

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> HEAVENLY DEAL
> SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY
> By PETER LAURIA, NY Post. 2.19
> Satellite radio operators Sirius and XM are expected to announce their
> long-awaited merger today, according to a source familiar with the  
> deal.
> The two sides were locked in negotiations over the weekend trying  
> to hammer
> out a final agreement with an eye toward going public with the  
> merger today
> in Washington, D.C., where XM is based, this source said.
> Talks were still going on at press time and the deal could fall  
> apart at any
> time. With antitrust issues of paramount importance, this source said
> lawyers for both companies were working overtime to fine-tune the  
> language
> of the agreement and frame the discussion around the deal itself  
> and not
> regulatory concerns.
> The transaction is expected to be structured as a merger of equals,  
> but
> given Sirius' higher enterprise value, shareholders in the Mel  
> Karmazin-led
> firm will likely come away with a larger percentage of a combined  
> company.
> According to the source, XM Chairman Gary Parsons will retain that  
> title in
> the combined entity, with Karmazin likely taking the CEO role. It  
> is unclear
> what role, if any, XM CEO Hugh Panero will play.
> Combining Sirius and XM would result in a single satellite radio  
> operator
> with more than 12 million total subscribers. A deal would also  
> marry Sirius
> content, such as Howard Stern, Frank Sinatra and Nascar with XM's  
> Oprah
> Winfrey, Bob Dylan and Major League Baseball.
> More important, analysts widely predict that a deal would also save  
> the two
> companies nearly $7 billion annually.
> Karmazin and Parsons have been dropping hints since last summer  
> about a
> possible tie-up, believing that competition from terrestrial radio,  
> online
> radio and mobile music devices such as iPods have not only expanded  
> the
> marketplace but also lowered the regulatory hurdles to a deal.
> In a note on Friday, Bear Stearns analyst Robert Peck speculated  
> that Sirius
> and XM needed to move quickly before their window of opportunity  
> closed.
> Gaining regulatory approval "could take up to 15 months; hence, we  
> think any
> proposed deal needs to be announced by the end of March to close by
> mid-2008," Peck wrote.
> On Friday, XM shares hit their lowest point since early November while
> Sirius shares were approaching 52-week lows. Shares in both  
> companies did
> trade on heavy volume and ended the session higher, with Sirius  
> gaining 10
> cents to close at $3.70 and XM jumping a dollar to $13.98.
>
>

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