Wachovia issued a report today on the DOJ approval of the Sirius and XM merger. Wachovia remains cautios on the SDARS sector.


• DOJ APPROVES SIRI/XMSR MERGER- The Department of Justice (DOJ)announced late Monday afternoon that it had finally approved the merger of SIRI and XMSR after more than a year of deliberation. In a statement released by the DOJ, it concluded that a merger between the two satellite radio companies "posedno harm to competition and that there was no potential harm to consumers from the two companies combining". With the DOJ decision now out of the way, FCC approval would appear to be a foregone conclusion. There are likely to be material conditions attached to this deal that will be released when the FCC officially rules on the deal (expected by early April at the latest) which could include a la cartepricing, a price freeze, and spectrum givebacks. XM shares are currently trading at an implied 5% discount to SIRI's 4.6 share (for each XM share) offer.

Tyler Savery Position - Long Sirius, Long XM