teech
02-19-2007, 05:10 PM
The nation’s two largest satellite radio services, XM ([Only registered and activated users can see links]) and Sirius ([Only registered and activated users can see links]), said today that they would merge.
The announcement ended months of speculation about whether the two companies would go ahead with a combination, but immediately raised questions about possible antitrust issues.
Under the terms of the deal, XM shareholders would receive 4.6 shares of Sirius stock for each share of XM they own. XM stock closed on Friday at $13.98 a share; Sirius closed at $3.70 a share. At those prices, XM shareholders would be receiving a 22 percent premium for their shares. Both stocks edged higher on Friday as speculation about a deal circulated.
The combined company would be worth about $13 b[Only registered and activated users can see links], the companies said in a joint statement today.
The announcement ended months of speculation about whether the two companies would go ahead with a combination, but immediately raised questions about possible antitrust issues.
Under the terms of the deal, XM shareholders would receive 4.6 shares of Sirius stock for each share of XM they own. XM stock closed on Friday at $13.98 a share; Sirius closed at $3.70 a share. At those prices, XM shareholders would be receiving a 22 percent premium for their shares. Both stocks edged higher on Friday as speculation about a deal circulated.
The combined company would be worth about $13 b[Only registered and activated users can see links], the companies said in a joint statement today.