Thursday, September 14, 2006
WOW - Did FCC Chairman Overstep His Bounds?
September 14, 2006
Did the FCC caiman overstep his bounds, or was it the UBSW report being quoted in a way that makes it appear that way?
Fly On The Wall reported that UBSW had a conference call where the FCC Chairman where allegedly the "Chairman made it clear that the FCC is not going to allow a merger in Satellite TV or Radio."
It was also reported by Fly On The Wall that "The firm expects shares to sell off on this news as they believe DISH, DTV, XMSR& SIRI have a merger premium."
And sell off these equities did. It is actually amazing to watch it all happen.
If the comments of the Chairman are accurate, he may find himself in some hot water.
- The Chairman's function is to set the agenda, not make unilateral decisions.
- The Chairman can not rule preemptively
- The decision is with the committee not the Chairman
- A decision being predetermined without hearing the arguments for a merger is not responsible.
It will be interesting to see what the fall-out from this is, and if any clarifications are made.
In our opinion, if the Chairman did make such comments, he will at a minimum hacve to make a statement showing the the FCC will consider these items with due process.
We here at SSG will keep you posted.
9/14/2006 01:16:00 PM
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