FCC in No Hurry on DBS Merger
By Ted Hearn -- Multichannel News, 12/4/2002 1:57:00 PM
EchoStar Communications Corp. got some bad merger news Wednesday when the Federal Communications Commission declined to expedite review of its new merger proposal with DirecTV Inc. parent Hughes Electronics Corp.
In a public notice, the FCC announced that the formal cutoff date for filing comments on the new merger plan is Jan. 21. That also happens to be the date when Hughes reportedly may walk away from the deal and insist on a $600 million breakup fee.
When EchoStar and Hughes filed their amended merger proposal Nov. 27, they told the FCC that because of the Jan. 21 deadline, "only expedited action can secure meaningful relief for the parties and for consumers."
In the notice, the FCC recounted its reason for rejecting the merger in October and enumerated changes to the merger proposed by the companies. But the agency did not indicate why it would keep the record open until Jan. 21.
"EchoStar is willing to extend applicable termination dates in our contract to make allowances for the FCC comment period," spokesman Marc Lumpkin said. "We will read the comments and respond accordingly."
"Both GM [Hughes parent General Motors Corp.] and Hughes are not waiving any provisions in the merger agreement," Hughes spokesman Richard Dore said.
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