Liberty to Convert Shares to Gain Control of Sirius

Liberty Media cold war with Sirius XM Radio Chief Executive Mel Karmazin just turned hot. Liberty said it intends to convert half the preferred stock it owns in Sirius into common shares, giving Liberty a total of 32% of the common stock.

Liberty also said, in a filing with the Securities and Exchange Commission, that it would "as soon as practicable" move to take control of the satellite-radio broadcaster's board. Sirius, meanwhile, said in a filing with the SEC that it had been "engaged in discussions" with Liberty "to explore possible transactions with respect to its ownership interest in Sirius," although no agreement had been reached. The disclosure by the media-investment company, which is controlled by mogul John Malone, came after a war of words between the two companies in recent months.