Rep. Issa Recuses Himself From Discussion About Merger
May 14, 2007
The proposed merger between Sirius and XM has many wrinkles. This latest one likely wont carry much play because congress has little to do with the merger between Sirius and XM, as it is the department of Justice that decides on the anti-trust matter.
The Center For Public Integrity has now focused some attention to Representative Darrell Issa because of his relationship to Directed electronics.
Article Excerpt:Congressman Has Personal Stake in XM-Sirius Merger
By Brendan McGarry
WASHINGTON, May 14, 2007 – U.S. Rep. Darrell Issa, R-Calif., could potentially benefit from a merger between satellite radio companies XM Satellite Radio Holdings Inc. and Sirius Satellite Radio, Inc., public documents show.
The 53-year-old Issa is the co-founder of Vista, Calif.-based Directed Electronics, Inc. (Nasdaq: DEIX), a security and entertainment systems-manufacturer and a major supplier of Sirius satellite radios. He served as president and chief executive officer of the company until 2000, when he was elected to Congress.
At the end of that year, Issa and his wife, Kathy, sold their controlling interest in Directed Electronics to Trivest, Inc., a private equity firm based in Miami. Through his charitable trust, the Issa Family Foundation, he retains a four percent minority stake in Directed Electronics, and sits on the company's board of directors, according to the company's 2007 proxy statement filed with the Securities and Exchange Commission.
After seeking written guidance from the House Ethics Committee about a potential conflict of interest in the merger, Issa will abstain from any committee or floor vote on the issue in the future, Dale Neugebauer, his chief of staff, said Friday.
"The congressman will be recusing himself on votes in the committee and House related to the XM-Sirius merger," Neugebauer said.
But during a Feb. 28 hearing about the merger by the House Judiciary Committee's Antitrust Task Force on the merger, Issa didn't mention his request to the Ethics Committee, or his business connections to Sirius. He sits on the task force, and participated in the hearing......READ MORE HERE
Position - Long Sirius, Long XM, No position Directed Electronics
5/14/2007 10:02:00 PM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
SSG is not a Financial Advisor. Read Disclosure: HERE