Sirius And XM Extend Deal – Two Week Cycles
In an interesting move, Sirius and XM have extended their merger deal for two weeks. The extension was fully anticipated, but there is the added function of a rolling two week cycle which means that unless either party notifies, that the deal extension will be automatic.
XM Satellite Radio (Nasdaq: XMSR – News) and SIRIUS Satellite Radio (Nasdaq: SIRI – News) today announced that the companies have agreed not to exercise their rights to terminate the Merger Agreement prior to May 15, 2008. SIRIUS and XM also announced that they have agreed to further extend the merger agreement, as necessary, for rolling two week periods unless either side notifies the other of its intention not to extend.
The closing of the pending merger remains subject to the approval from the Federal Communications Commission and satisfaction of all other applicable conditions. On March 24, 2008, the U.S. Department of Justice informed SIRIUS and XM that it ended its investigation into the pending merger, that it has concluded that the merger is not anti-competitive, and that it will allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval for the pending merger in November 2007. For more information on the SIRIUS-XM merger, please visit www.XMmerger.com or www.SIRIUSmerger.com.
Position – Long Sirius, Long XM
It is hard to know what to take of that. Did they do it because they may not want to wait that long to have the choice to get out. Or they only did it in two week cycle, because they feel the FCC is that close and would not need it for that much longer. Or they did not want to send a bad message to investors, by going with 2 more months thinking if people thought that it might go that much longer it would be bad news for their stock price.
That’s SIRIUS not… Siriuys.
I think it is more to put pressure on the FCC. With each renewal, Sirius and XM get news telling of another renewal. It shows how ineffective the FCC is being in all of this.`It shows that both parties are committed to this process and they are not going to simply walk away. It shows that the FCC has to render a decision. They are not going to make it easy on them and part ways.
Will…..
Typo. My apologies. Why do they put the Y next to the U on a keboard anyway???
Cheers