Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) Stocks Rising on Looming Merger News
Shares of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. rose Friday morning after an analyst said he expects the Department of Justice to announce it will not block a deal to unite the two.
Shares of XM gained 90 cents, or 6.7 percent, to $14.64, and shares of Sirius rose 12 cents, or 3.4 percent, to $3.65 after the opening bell.
Bear Stearns analyst Robert Peck said that while he believes junior staffers at the Justice Department moved to block the deal, senior staffers probably disagreed and probably will rule in favor of the deal, which would allow Sirius to buy out the much-larger XM.
If the deal is approved, XM shareholders will receive 4.6 shares of Sirius' stock for every XM share they own.
Shares of XM gained 90 cents, or 6.7 percent, to $14.64, and shares of Sirius rose 12 cents, or 3.4 percent, to $3.65 after the opening bell.
Bear Stearns analyst Robert Peck said that while he believes junior staffers at the Justice Department moved to block the deal, senior staffers probably disagreed and probably will rule in favor of the deal, which would allow Sirius to buy out the much-larger XM.
If the deal is approved, XM shareholders will receive 4.6 shares of Sirius' stock for every XM share they own.
Labels: SIRI, Sirius Satellite Radio Inc., XM Satellite Radio Holdings Inc., XMSR
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