XM, Sirius Stock Surges on Merger Buzz
Rumors about the “impending” approval of the merger between XM and Sirius Satellite Radio have floated seemingly weekly for several months, usually to no avail. But Wednesday, buzz indicating such an approval was strong enough to send the stocks of both satellite radio companies soaring.
The Wall Street Journal reported that “encouraging comments” from the head of Sirius was the major factor that sent the stocks upward, despite a generally week day for tech stocks and the Nasdaq.
Sirius CEO Mel Karmazin had pronounced himself “very optimistic” about an approval at a Bear Stearns conference early in the day, pointing that if anything major were wrong with the merger, regulators would have knocked it down by now.