Sirius XM, Ergen Move Closer to a Rescue Deal

Sirius XM Radio has significantly narrowed the divide in talks with satellite mogul Charles Ergen over a deal to save the company from a bankruptcy filing. But the country's sole satellite-radio operator continues to discuss a rival offer from Liberty Media Inc., according to people familiar with the situation. While the gap between what Mr. Ergen has proposed and Sirius has asked for is narrow, the two sides haven't reached agreement yet on other, nonfinancial issues, these people said. Mr. Ergen is prepared to let Sirius Chief Executive Mel Karmazin keep his job. The battle for Sirius has pitted Messrs. Ergen and Karmazin and John Malone, the billionaire who controls Liberty, against one another in a high-stakes game of brinksmanship. Known as three of the media world's biggest personalities, the men have played major roles in the evolution of cable and satellite television, have long known each other and often clashed.