ISS Endorses XM/Sirius Merger
The proxy advisory service ISS announced late last week that it has recommended that shareholders of XM and Sirius Satellite Radio approve the merger between the two companies.
The group made the decision, it said in a statement, because From a strategic viewpoint, it appears that combination would allow shareholders of both companies to participate in the expected benefits of a larger entity. Our review of Wall Street research reports suggest that operational and cost savings would yield estimated synergies of approximately $6 billion.”
Both companies have scheduled shareholder votes for Nov. 13, with approval decisions set to come after that by the Department of Justice and Federal Communications Commission.