Steve Mehs
05-01-03, 04:12 AM
Hughes Electronics has started to promote its deal with News Corp. to shareholders, telling them the media giant's takeover of the company and its assets, including DirecTV, is a winner.
In a message sent to shareholders this week, Hughes CEO Jack Shaw said, "Upon the completion of the transaction with News Corp., we believe we have an unprecedented opportunity to elevate Hughes to the next level of growth and profitability." In mid-April, News Corp. said it would take a 34 percent controlling stake in Hughes in a transaction valued at $6.6 billion.
Shaw said through Hughes' hook-up with News Corp., it will be "aligned with a leading global media and content company that has unrivaled experience in developing and managing successful pay-TV platforms around the world. By bringing an expanded vision to Hughes and a passion for our business, we believe that News Corp. will enable Hughes to be stronger and grow faster than it could have as a stand-alone company or under GM's continued ownership."
Shaw also promoted the financial side of the deal. Based on Hughes' stock price when the deal was announced April 9, the transaction offers GMH stockholders a premium of more than 20 percent on 17.5 percent of their shares, he said.
The deal also eliminates the tracking stock discount for GMH shares. "We believe that this alone puts Hughes in a much better position to realize its full potential in the future by having direct access to the equity markets, providing opportunities for direct business combinations and related transactions, and providing stockholders with the opportunity to have a direct vote in the election of Hughes directors and other matters of significance to the corporation," Shaw said.
From SkyReport (http://www.skyreport.com) (Used with Permission)
In a message sent to shareholders this week, Hughes CEO Jack Shaw said, "Upon the completion of the transaction with News Corp., we believe we have an unprecedented opportunity to elevate Hughes to the next level of growth and profitability." In mid-April, News Corp. said it would take a 34 percent controlling stake in Hughes in a transaction valued at $6.6 billion.
Shaw said through Hughes' hook-up with News Corp., it will be "aligned with a leading global media and content company that has unrivaled experience in developing and managing successful pay-TV platforms around the world. By bringing an expanded vision to Hughes and a passion for our business, we believe that News Corp. will enable Hughes to be stronger and grow faster than it could have as a stand-alone company or under GM's continued ownership."
Shaw also promoted the financial side of the deal. Based on Hughes' stock price when the deal was announced April 9, the transaction offers GMH stockholders a premium of more than 20 percent on 17.5 percent of their shares, he said.
The deal also eliminates the tracking stock discount for GMH shares. "We believe that this alone puts Hughes in a much better position to realize its full potential in the future by having direct access to the equity markets, providing opportunities for direct business combinations and related transactions, and providing stockholders with the opportunity to have a direct vote in the election of Hughes directors and other matters of significance to the corporation," Shaw said.
From SkyReport (http://www.skyreport.com) (Used with Permission)