
Originally Posted by
Dave Davis
Deutsche Bank upgrades Liberty Capital (Nasdaq: LCAPA) from Hold to Buy.
Deutsche analyst says, "On Feb 17th, LCAPA annc'd a deal with Sirius XM Radio (Nasdaq: SIRI) whereby LCAPA garnered a 40% equity stake and a $30m financing fee in exchange for a $530m cash loan to help SIRI avoid bankruptcy. The equity and fee are today worth $884m, an enhancement of NAV by $9/share. In its Apr 6th financing update release, LCAPA indicated it had repurchased $750m of its cvt bonds for $187.5m, enhancing NAV by $6/share. The Company also importantly noted that "Liberty has not settled all of its swaps that reference its own or third-party debt."...Mgmt has undertaken these two significant transactions in the past 2 months that have added $15 of value to NAV, well more than $8 LCAPA is trading at today before even considering its prior net asset value. Given the 79% upside to our new $15 target price, and the likelihood that favorable mgmt activity will continue, we believe a Buy rating is appropriate."
Liberty Media (Capital) Corporation is a holding company, which, through its subsidiaries is engaged in the video and on-line commerce, media, communications and entertainment industries.
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