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Is it possible that Sirius XM (SIRI +0.9%) is close to initiating a share buyback that would put...

Is it possible that Sirius XM (SIRI +0.9%) is close to initiating a share buyback that would put Liberty Media (LMCA +0.1%) in control? That's the question posed by SA author Crunching Numbers after sizing up the $400M senior note offering the company floated last week. Liberty doesn't want over 80% of the Sirius because that would trigger a loss of tax credits, but a 50.01% stake would probably suit it just fine.
Comments (2)
  • Has anyone calculated how many shares have to be bought back to put Liberty Media at 50.01?
    16 Aug 2012, 02:53 PM Reply Like
  • efcs-

     

    yes, but it seems to change daily with purchases by Liberty and the exercise of options. As of my last calculation, Liberty would need to buy less than 150 million shares, but because of the quirks in the math, Sirius would need to buy about double that amount.
    20 Aug 2012, 02:56 PM Reply Like
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