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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (33183)	5/13/1998 2:38:00 PM
From: Don Dorsey	Read Replies (2) \| Respond to of 50808

EchoStar to benefit from blocked Primestar deal Reuters Story - May 13, 1998 13:08 NEW YORK, May 13 (Reuters) - EchoStar Communications Corp , a digital broadcasting satellite (DBS) company, will benefit from a move by U.S. regulators to block the $1.1 billion sale of a key television satellite slot to Primestar Inc, analysts said. Shares of EchoStar gained 1-5/8 to 29-1/8 on volume of 686,500 at midday, nearly three times its average daily trading volume. U.S. regulators on Tuesday blocked the sale of the satellite slot by Rupert Murdoch's News Corp. and MCI Communications Corp. to Primestar, which is owned by a group of cable television operators. Regulators said allowing the cable group to gain control of one of only three satellite slots suitable for DBS service could stifle the leading competitive threat to cable. "Yesterday's action means there is more uncertainty over Primestar for some time. It's really positive for EchoStar and the other DBS companies since the competitive environment is less threatening now," said Vijay Jayant, an analyst with Bear Stearns. "The delay in determining the future of Primestar gives Echostar more time to gain market share, to make hay while the sun shines," Jayant said. Jayant reiterated a buy recommendation on EchoStar. In addition, Goldman Sachs initiated coverage of EchoStar on Wednesday, starting the company on its recommended list. Shares of U.S. Satellite Broadcasting , another DBS firm, gained 5/16 to 10. MCI and News Corp. acquired the satellite slot, one of only three suitable for DBS transmission to the United States, in a 1996 government auction. But the partners decided to sell the slot to Primestar last year instead of offering their own DBS service. Primestar is owned by TCI Satellite Entertainment Inc., a publicly traded spin-off of cable giant Tele-Communications Inc. , Time Warner Inc. , MediaOne Group Inc. , Comcast Corp. and Cox Communications Inc. .