SiriusXM snubs Liberty Media's takeover attempt – again

Sirius XM Radio Inc. delivered a counterpunch to Liberty Media's hostile takeover attempt in a brief it filed with federal regulators. Liberty Media in March threw the first punch by asking the Federal Communications Commission to give it control over SiriusXM's operating licenses.

Liberty argued that its 40% stake in SiriusXM gave it "de facto" control over the satellite radio company. It refined its argument further last Thursday, arguing that its stake, and control over five of the 13 seats on the Sirius board is "more than sufficient to determine the outcome of matters submitted to a vote of shareholders." SiriusXM took umbrage over the characterization. In a brief filed with the FCC, SiriusXM scoffed at Liberty's argument that "40 is the new 50." "There is no support for the remarkable proposition that a ... 40% minority interest, standing alone, is sufficient to bestow control of a public company," wrote SiriusXM's attorneys, who urged the agency's commissioners to dismiss Liberty's request.