Sirius, XM Stocks Rise as Merger Looms

Analyst predicts Justice Department won't block Sirius from buying XM
By Laila Weir,  Newser User
Posted Nov 30, 2007 1:16 PM CST
A Chrysler Jeep drives past an advertisement for XM Satellite Radio at the New York International Auto Show in New York in this April 13, 2007 file photo. XM Satellite Radio Holdings Inc. said on Thursday,...   (Associated Press)
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(Newser) – XM Satellite Radio and Sirius stock prices got a boost Friday when an analyst predicted the Justice Department won't block Sirius from buying out the larger XM. Morning trade saw XM shares jump 9.4% and Sirius shares 4.6%, reports CNN. The analyst said that shares could hit $20 and $4.50, respectively, if the deal goes through.

The plan would give XM shareholders 4.6 shares of Sirius stock for each of their XM shares. "We think the Justice Dept. decision will be based on analysis of market leverage, competition and market definition," said the analyst, who also suggested the FCC might make its decision soon after the Justice Department. (Read more Sirius stories.)