Thursday, May 31, 2007

Dodging Bullets: thestreet.com On Merger

Stalled Merger Is Slamming Sirius
By Scott Moritz, Senior Writer, thestreet.com, 5/31/2007 6:05 AM

The merger of XM (XMSR) and Sirius (SIRI) still hasn't reached the launch pad.
It seems the satellite-radio hookup remains earthbound as lobbyists and power brokers face off.
It has been 70 days since the two companies have filed their intentions with federal regulators -- yet the merger hasn't even passed the preliminary review process.
The delay means that the Federal Communication Commissions has yet to start its 180-day merger-review clock.
"This constitutes the longest application-to-clock delay in FCC history," David Trout of M&A Researcher says in a report Wednesday. "There is simply no way to view the delay in a positive light."
Indeed, a look at some other recent deals in the tech sector shows that none took as long as the XM-Sirius proposal to get its regulatory clock started.
The combination of the nation's only two pay-radio providers poses a difficult case for regulators. To sign off, they must be persuaded that consumers would get good prices and better selection with one broadcaster...read more: here