Monday, November 5, 2007

Sirius/XM merger update!

Props to my dawg Baron Von Bunghole for this catch! Don't foget 2 check out his stuff:


Dept of Justice to approve soon? reports that the Dept. of Justice may approve the Sirius/XM merger as early as next week. It is thought that the FCC would announce their decision 30 days later. Last week Mel Karmazin that the merger would take a day to happen after approval. Mel predicted that the merger would happen at the end of the year and now it looks like that was dead on.

Report: DoJ Antitrust Chief to approve merger

Reports have come in today claiming that Thomas Barnett, Assistant Attorney General for the Department of Justice Antitrust Division will approve the Sirius-XM merger, according to a Cowen & Company note issued today.

While no official announcement has been made, the reports have sent Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) stock soaring up nearly 6% today, despite a relatively weaker market. According to Cowen & Company analyst Tom Watts, the Antitrust Chief's approval would come "despite a staff recommendation against the deal."

In addition, it's reported that the announcement of a decision also might arrive as early as next week.

Watts notes that the pattern of the Antitrust Chief acting contrary to his staff's recommendations would be similar to the approval of the Whirlpool-Maytag merger of 2006. The Antitrust Chief ultimately approved the Whirlpool-Maytag merger, despite that DoJ staff was reported to be positioning to block the deal.

Cowen & Company continue to expect the Sirius-XM merger to be approved, and "take encouragement" from word that a decision come as soon as next week.

No comments: