This from the WallStreetJournalInteractive Edition:
TCI Satellite Entertainment Up 32% On
Takeover Talk
By Shawn Young
NEW YORK (Dow Jones)--Shares of TCI Satellite Entertainment Inc.
(TSATA) gained more than 30% for a second straight day Wednesday as
rumors swirled that the company is about to be bought.
Analysts and arbitragers said the Boulder, Colo., satellite television
company has long been regarded as a probable takeover target, with the most
likely buyers listed as EchoStar Communications Corp. (DISH) or DirecTV,
part of the Hughes Electronics Corp. unit of General Motors Corp. (GM).
"They're valuable assets," said one analysts who asked to remain
anonymous. "A lot of rumors have been flying."
The satellite entertainment sector, which competes with cable TV, has been
undergoing a flurry of consolidation.
Internet chat boards bulged with speculation Wednesday that a deal is
imminent. Internet speculation about price ranged from about $4 a share to as
much as $8 or $10.
Shares of TCI Satellite, which is not a unit of Tele-Communications Inc.
(TCOMA) despite the TCI name, recently were up 9/16, or 26.8%, to 2
13/16 on torrential Nasdaq volume of 14.9 million shares. Average daily
volume is 1.2 million.
Shares of EchoStar were up 5/8, or 1.2%, to 52 31/32 in light Nasdaq
trading.
An official at TCI Satellite declined to commment. Officials at the other
companies could not be reached immediately. |
