Sirius, XM Include Two Week Cycles in Deal Extension

In an interesting move, Sirius (SIRI) and XM (XMSR) have extended their merger deal for two weeks. The extension was fully anticipated, but there is the added function of a rolling two week cycle which means that unless either party notifies, the deal extension will be automatic.

XM Satellite Radio and SIRIUS Satellite Radio Wednesday announced that the companies have agreed not to exercise their rights to terminate the Merger Agreement prior to May 15, 2008. SIRIUS and XM also announced that they have agreed to further extend the merger agreement, as necessary, for rolling two week periods unless either side notifies the other of its intention not to extend.

The closing of the pending merger remains subject to the approval from the Federal Communications Commission and satisfaction of all other applicable conditions. On March 24, 2008, the U.S. Department of Justice informed SIRIUS and XM that it ended its investigation into the pending merger, that it has concluded that the merger is not anti-competitive, and that it will allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval for the pending merger in November 2007.

Position - Long Sirius, Long XM

Comments

[ripped]

Tyler; wiil we hear of what is commonly known as a "sunshine Period" from the FCC before they decide to arbitrate, vote and issue their mandates?

A "sunshine period" notifies the public that they will be accepting NO more filings of any type with regard to the merger from any sources.

It usually comes with some lead time - like a week or two - to let people who may be preparing final petitions to either get them in, or forget about it.

How long after such a sunshine period does the FCC rule and will such be degreed?

Thank you.

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