John Corn
01-22-03, 05:54 AM
The board of General Motors will next month consider revised plans for a sale or possible leveraged buy-out of Hughes, the carmaker's communications subsidary and its DirecTV satellite business.
GM directors are due to receive a detailed presentation on February 4 of options for Hughes following the collapse last December of the company's $18bn-$20bn sale to EchoStar, DirecTV's main satellite-TV rival.
Jack Shaw, president and chief executive of Hughes, is understood to have urged GM to end uncertainty surrounding Hughes, which lost $467m last year amid intense competition for pay-TV customers.
Next month's presentation will outline four options for Hughes, comprising a possible trade sale, IPO, a buy-out supported by private equity groups or retention of the business.
Mr Shaw earlier this month played down the prospects of a management buy-out, while Rick Wagoner, GM chief executive, pledged to reach a decision on the communications business "within 60 days".
News Corporation, the media group led by Rupert Murdoch, is poised to revive an offer for DirecTV if GM opts to seek a trade buyer. The company has held preliminary discussions with GM following the carmaker's decision to abandon the EchoStar deal in the face of strong regulatory opposition.
Rest of the Story (http://biz.yahoo.com/ft/030121/1042490980000_1.html)
GM directors are due to receive a detailed presentation on February 4 of options for Hughes following the collapse last December of the company's $18bn-$20bn sale to EchoStar, DirecTV's main satellite-TV rival.
Jack Shaw, president and chief executive of Hughes, is understood to have urged GM to end uncertainty surrounding Hughes, which lost $467m last year amid intense competition for pay-TV customers.
Next month's presentation will outline four options for Hughes, comprising a possible trade sale, IPO, a buy-out supported by private equity groups or retention of the business.
Mr Shaw earlier this month played down the prospects of a management buy-out, while Rick Wagoner, GM chief executive, pledged to reach a decision on the communications business "within 60 days".
News Corporation, the media group led by Rupert Murdoch, is poised to revive an offer for DirecTV if GM opts to seek a trade buyer. The company has held preliminary discussions with GM following the carmaker's decision to abandon the EchoStar deal in the face of strong regulatory opposition.
Rest of the Story (http://biz.yahoo.com/ft/030121/1042490980000_1.html)