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[Satellite TODAY Insider 10-03-12] The Federal Communications Commission (FCC) has put Liberty Media’s application to secure control of satellite broadcaster Sirius XM Radio up for public notice in response to its application filed in August, Liberty Media confirmed Oct. 3.
The FCC also announced a Nov. 1 deadline to file petitions seeking to deny the application, with responses to those filings due two weeks later and a final rebuttal to the responses due by Nov. 20.
In addition to the public notice, the FCC waived the fact that Sirius XM Management did not sign the application. In an application filed with the FCC this past summer, Sirius XM said it would “cooperate fully with the FCC in its evaluation of Liberty Media’s applications.” The satellite broadcaster told the commission it did not sign some of the forms because it did not have all the facts required to make certain certifications.
Sirius XM CEO Mel Karmazin is scheduled to speak Oct. 10 before Liberty Media shareholders in New York City. Karmazin, whose employment contract with Sirius XM is up for renewal in December, has fought against the takeover, stating his belief that Liberty Media would be acquiring the company without paying a premium.
Seeking Alpha analysts noted their interest in Karmazin’s scheduled appearance at the Liberty Media shareholders meeting. “Could there be an announcement? Considering that Sirius is in the middle of what many would call a ‘hostile takeover,’ and that Liberty is the one causing the hostility, it seems unusual Karmazin will speak there,” Seeking Alpha said in a research note. “What could this mean? To me there are only two possibilities. He is either going to say that he is going to stay or leave, or he is going to say that the two companies have come to an agreement. We believe he will both stay and come to an agreement.”
Liberty Media is the largest shareholder in Sirius XM and intends to beef up its 48 percent share to more than 50 percent by Oct. 14. Liberty Media also informed the FCC that it wasn’t planning to replace the current Sirius XM board before the next annual meeting. Investor Warren Buffett and his Berkshire Hathaway firm are currently the top institutional owners of Liberty Media, according to recent reports.
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