and north of the border The Globe and Mail (Toronto, Ont.)
...The deal will likely push a combination of Canada's two affiliate companies soon after, since the two separate entities in the U.S. will cease to exist, analyst Andrea Horan at Genuity Capital Markets said. It is not clear how the CRTC would treat such a deal, but a plausible scenario is that one of the players could seek to have its licence dropped in Canada after the merger, leaving one company. Sirius Canada Inc. is owned by the government-owned CBC, privately held Standard Radio and U.S.-based Sirius Satellite Radio. XM Canada is affiliated with XM Satellite Radio Holdings Inc. and Canadian Satellite Radio Holdings Inc., a publicly traded company based in Toronto. Following the merger announcement, Canadian Satellite Radio Holdings shares surged 25 per cent, gaining $1.66 to trade at $8.30 per unit. The shares of both U.S. companies tumbled more than 40 per cent last year on concerns about whether the rapid growth both companies had seen would continue. Both stocks have gained support in recent months from speculation that they would attempt to merge. ---------------- > >From Skyreport.com, 3:13 PM today: > > BREAKING NEWS: Sirius, XM to Merge in $13 Billion Deal > The companies made it official this afternoon: XM Satellite Radio and Sirius > entered into a definitive agreement to merge operations in a deal valued at > $13 > billion, which includes net debt of about $1.6 billion. > > Through the deal, XM shareholders will receive a fixed exchange ratio of 4.6 > shares of Sirius common stock for each share of XM. XM and Sirius shareholders > will each own about 50 percent of the combined company. > > Sirius CEO Mel Karmazin will become CEO of the combined company and Gary > Parsons, chairman of XM, will become chairman of the new entity. The new > company's board of directors will consist of 12 directors, including Karmazin > and Parsons, four independent members designated by each company, and a > representative from General Motors and American Honda. > > XM CEO Hugh Panero will continue in his current role until the anticipated > close > of the merger. > > The companies said they will continue to operate independently until the > transaction is completed and will work together to determine the combined > company's corporate name and headquarters location prior to closing. > > The deal also is subject to regulatory approvals, including an OK from the > Federal Communications Commission. It's the second big satellite deal the > agency > is working on, given its scrutiny of Liberty Media's takeover of DIRECTV. > > > -- > -Rob de Santos > Columbus, OH > > _______________________________________________ > Swprograms mailing list > [email protected] > http://montreal.kotalampi.com/mailman/listinfo/swprograms > > To unsubscribe: Send an E-mail to [EMAIL PROTECTED], or visit the URL shown > above. > _______________________________________________ Swprograms mailing list [email protected] http://montreal.kotalampi.com/mailman/listinfo/swprograms To unsubscribe: Send an E-mail to [EMAIL PROTECTED], or visit the URL shown above.
