Shares of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. jumped yesterday after Janco analyst April Horace upgraded both companies and speculated that the merger will be approved.
Horace raised her rating of XM shares to "Buy" from "Accumulate" on the assumption the deal will eventually close. She also upgraded her rating of Sirius shares to "Accumulate" from "Market Perform."
Janco had remained on the sidelines in terms of synergy estimates, because "we didn’t believe the synergies were that great." But in yesterday's note, and after nearly a year of analysis, Horace estimated that the combination could achieve cost savings of $4.1 billion over the next 6 years.
"It remains to be seen whether or not the DOJ approval will arrive before Sirius reports its financial results, sometime in the second half of February," Horace wrote. Sirius and XM have the option to cancel the merger (without penalty) if it doesn't win regulatory approval by March 1st, but Horace believes the companies will extend the agreement.
"We believe that the DOJ will make an announcement before March 1, and that the companies will extend the March 1 date if they are still waiting for FCC approval," the analyst said.
[AP]
Yes. This is great news.
BUT. Heres the FRUSTRATING thing. The analyst also gave a $3.65 target price post merger! WTF! Thats even less than it's been this year on just ANTICIPATION of the merger.
.....AND....AND....she also said Sirius would be $3.80 if the merger DIDN'T go thru!!!! DOUBLE WTF!! :-P
This is EXACTLY why Sirius is so frustrating. NO MATTER what good things happen to Sirius...they get no respect. It's been one thing after another. When will it end?
Wheres the love?
Psychologically sirius shareholders need to see $6 again right after the merger. ENOUGH of the 3s!!!! :-)
Merger?!?!!?
NNNNOOOOOOOO!!!!!!
"Horace wrote. Sirius and XM have the option to cancel the merger (without penalty) if it doesn't win regulatory approval by March 1st, but Horace believes the companies will extend the agreement."
Thats the best news ive heard all year. Hopefully it happens.
Sirius has quietly been scaling back certain 'cost centers' within its operations. It has been cutting field staff for some time. I am getting the distinct feeling from watching what's going on around Sirius that it is not counting on approval of the merger.
Time and time again, these analysts have proven that they don't have any information, but make certain statements to keep them in the limelight and seem relevant.
I get the OPPOSITE feeling. I feel the merger WILL go through. I don't see the signs to the contrary that you seem to at all.
That being said, it's not a question of if for me, but when.
This thing has dragged on for an insanely long time. To the point where shareholders feel like a punching bag.
Seeing MSFT make a pitch for YHOO only adds to our frustration, because you just get the feeling that the YHOO deal will pass thru BEFORE the friggin Sirius/xm merger! I only partly am joking about that. What Sirius shareholders have been put thru is nothing short of an exercise in masochism.
Hopefully we'll get the word this month. But at this point, I'm kinda numb. I will wake up once it's official, but until then, it's all kinda fuzzy. :-)
put us out of our misery gfo ahead and merge already
As I sit here on the sidelines, I watch these so called anal-ysts go out on a plank with their guestimates, not knowing anymore than I do. I just tickles me so fancy, like my tranny girls do!
Me, Boardroom Jimmy, predicts a big NO to this merger.
SAM!!!
I've never seen anything like it! I thought this merger died last year, yet its heart still beats!
Hoo Hoo, Mel.
We're gonna get rich(er). It's a good thing the Bushmeister's boy is still in charge of the FCC.
I can't believe all of the Sirius listeners still think we're gonna improve our equipment and programming with the savings that we get from the synergies. Those "synergies" are going straight to our pockets!
Hoo Hoo
bub bye pests!Prepare your Eulogy
the pests will be stronger than ever
no ratings and minimal subs...when were the "pests" ever strong?
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