XM/Sirius Merger Update

SIRIUS, XM SHARES SHOW GREATER RISK OF RALLY THAN FURTHER SLIDE
[SOURCE: Bloomberg, AUTHOR: Christopher Stern and Don Jeffrey]
Since Sirius Satellite Radio Inc. Chief Executive Officer Mel Karmazin agreed to buy his only rival, investors have sold both stocks in a bet regulators will block the deal. Now some analysts say the shares are undervalued. Sirius, based in New York, and larger XM Satellite Radio Holdings Inc. have seen their shares fall since the union of the only two pay-radio companies was announced Feb. 19. Shares of Sirius have declined 22 percent; XM has dropped 20 percent and hasn't closed above its pre-offer price of $13.98 in more than three months. Investors may be overly pessimistic the transaction will unravel, said Robert S. Peck, a Bear Stearns & Co. analyst in New York. Even if the deal fails, Sirius shares may rise to $4 by 2008, a 38 percent increase, said Peck. The companies insist they can thrive on their own. Still, investors are concerned that competition from new services such as HD radio and Internet radio over mobile phones will cut into satellite radio's growth.
http://www.bloomberg.com/apps/news?pid=20601084&sid=aQ6iCRupRGZM&refer=s...

72 MORE REPS LEAD BIG PARADE AGAINST XM/SIRIUS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A group of 72 US House members have signed a letter to the Federal Communications Commission, the Federal Trade Commission and the Justice Department opposing the merger of Sirius and XM. They minced no words, saying "the marriage of the only competitors in the satellite radio market would create a monopoly which would be devastating to consumers." "The FCC has never before allowed the only two competitors in a given market to combine, and we would seriously question an FCC decision to start now," the letter concluded.
http://www.broadcastingcable.com/article/CA6453081.html?rssid=193
* Congressmen Send FCC Letter Opposing XM/Sirius Merger
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10036...

WOMEN IN BUSINESS GROUP SIDES WITH XM/SIRIUS ON MERGER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In an e-mail sent to media reporters on Monday, Women Impacting Public Policy (WIPP) said it supported the merger between XM and Sirius believing the deal will "substantially enhance programming choices by creating a stronger satellite radio company.... It will also provide a number of important economic benefits for small businesses." The group represents women and minorities in business.
http://www.broadcastingcable.com/article/CA6452931.html?rssid=193