CNN Money: Wall Street Bets That Merger Will Not Get Approved
Bad reception for Sirius and XM
Shares of the two satellite radio firms have taken a hit since their merger plans were announced in February as Wall Street bets that a deal will not get approved
By Paul R. La Monica
, CNNMoney.com editor at large, March 26 2007
Consumers and investors currently can choose between two satellite radio companies. And although Sirius Satellite Radio and XM Satellite Radio are hoping to change that, Wall Street appears to be betting that their merger is not going to get approved.
Shares of Sirius
) and XM
) are each trading lower than they were before the two companies announced last month that they intended to combine, forming one satellite radio giant with 14 million subscribers.
Sirius Satellite Radio CEO Mel Karmazin has defended his company's planned merger with XM in Washington. But Wall Street is skeptical about the chances of a deal getting approved.
Shares of Sirius and XM shot up earlier this year in anticipation of a merger. But the stocks have plunged back to Earth now that a deal has been announced.
The deal would bring shock jocks Howard Stern and Opie and Anthony, as well as programs featuring Oprah Winfrey and Martha Stewart and satellite broadcasts of all major sporting events, under one corporate roof.
When Sirius and XM unveiled their merger plans on President's Day, the terms of the deal valued XM's stock at $17.02 a share, a 22 percent premium from its price before the announcement....read more: here
3/26/2007 02:39:00 PM
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