Monday, November 27, 2006
Stifel Comments On SIRI/XMSR Merger
08:31, In Play,
www.briefing.comXMSR XM Satellite: Satellite radio merger attempt likely - Stifel (15.27 ) -Update-
Stifel beleives the probability of a SIRI/XMSR merger attempt within the next 18 months (or potentially sooner) is 75%. Their conviction is based mainly on Mel Karmazin's track record and a compelling risk / reward trade off. Firm has dug through the 10ks and rediscovered that Karmazin-led cos conducted over 20 major M&A transactions, totaling nearly $80 bln. Firm believes the probability of an FCC/DOJ merger approval is 55-60%, with market definition as the key variable. Firm says it really comes down to whether terrestrial radio and to a far lesser extent the iPod are considered as competitors - there are pros and cons to the merits of each. Firm says a successful merger could create $7 bln of shareholder value. Firm raises their tgt on XMSR to $18 from $16.
11/27/2006 09:05:00 AM
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