Steve Mehs
03-28-03, 04:15 AM
With the due diligence process pretty much done for potential buyers eyeing DirecTV and Hughes, one analyst said he expects bidders to soon submit proposals for the coveted satellite TV assets.
Tom Watts of SG Cowen said General Motors, which controls Hughes and DirecTV, could get those offers shortly. He said in a research note he expects any buyer to obtain only GM's 20 percent stake in Hughes.
Watts said he anticipates a premium, possibly in the range of $14 to $16 per share, for Hughes. "We believe this benchmarking effect, combined with relief from the sale overhang, could push GMH shares into the $12 to $13 range," he said.
News Corp. continues to be the most likely buyer, Watts said. However, a transaction that merges Hughes with other News Corp. properties is a possibility, he added. "This uncertainty represents the primary short-term risk to Hughes in our mind," Watts said.
From SkyReport (http://www.skyreport.com/skyreport/mar2003/032803.shtm#four) (Used with Permission)
Tom Watts of SG Cowen said General Motors, which controls Hughes and DirecTV, could get those offers shortly. He said in a research note he expects any buyer to obtain only GM's 20 percent stake in Hughes.
Watts said he anticipates a premium, possibly in the range of $14 to $16 per share, for Hughes. "We believe this benchmarking effect, combined with relief from the sale overhang, could push GMH shares into the $12 to $13 range," he said.
News Corp. continues to be the most likely buyer, Watts said. However, a transaction that merges Hughes with other News Corp. properties is a possibility, he added. "This uncertainty represents the primary short-term risk to Hughes in our mind," Watts said.
From SkyReport (http://www.skyreport.com/skyreport/mar2003/032803.shtm#four) (Used with Permission)