> > > > > > HEAVENLY DEAL > SIRIUS, XM SET TO CONFIRM MERGER PLAN TODAY > By PETER LAURIA, NY Post. 2.19 > Satellite radio operators Sirius and XM are expected to announce their > long-awaited merger today, according to a source familiar with the > deal. > The two sides were locked in negotiations over the weekend trying > to hammer > out a final agreement with an eye toward going public with the > merger today > in Washington, D.C., where XM is based, this source said. > Talks were still going on at press time and the deal could fall > apart at any > time. With antitrust issues of paramount importance, this source said > lawyers for both companies were working overtime to fine-tune the > language > of the agreement and frame the discussion around the deal itself > and not > regulatory concerns. > The transaction is expected to be structured as a merger of equals, > but > given Sirius' higher enterprise value, shareholders in the Mel > Karmazin-led > firm will likely come away with a larger percentage of a combined > company. > According to the source, XM Chairman Gary Parsons will retain that > title in > the combined entity, with Karmazin likely taking the CEO role. It > is unclear > what role, if any, XM CEO Hugh Panero will play. > Combining Sirius and XM would result in a single satellite radio > operator > with more than 12 million total subscribers. A deal would also > marry Sirius > content, such as Howard Stern, Frank Sinatra and Nascar with XM's > Oprah > Winfrey, Bob Dylan and Major League Baseball. > More important, analysts widely predict that a deal would also save > the two > companies nearly $7 billion annually. > Karmazin and Parsons have been dropping hints since last summer > about a > possible tie-up, believing that competition from terrestrial radio, > online > radio and mobile music devices such as iPods have not only expanded > the > marketplace but also lowered the regulatory hurdles to a deal. > In a note on Friday, Bear Stearns analyst Robert Peck speculated > that Sirius > and XM needed to move quickly before their window of opportunity > closed. > Gaining regulatory approval "could take up to 15 months; hence, we > think any > proposed deal needs to be announced by the end of March to close by > mid-2008," Peck wrote. > On Friday, XM shares hit their lowest point since early November while > Sirius shares were approaching 52-week lows. Shares in both > companies did > trade on heavy volume and ended the session higher, with Sirius > gaining 10 > cents to close at $3.70 and XM jumping a dollar to $13.98. > >
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