Hughes, EchoStar May File Countersuit This Week

[Five Hole]

http://biz.yahoo.com/djus/021104/1944000738_2.html

[raj2001]

It's just a formality, IMO.

[John Corn]

NEW YORK, Nov 5 (Reuters) - Hughes Electronics Corp. (nyse: GMH - news - people) and EchoStar Communications Corp. (nasdaq: GMH - news - people) could challenge a suit by U.S. antitrust enforcers aimed at blocking their proposed merger, The Wall Street Journal reported on Tuesday.

Citing industry officials, the Journal said the companies are leaning strongly toward challenging the Justice Department's recent lawsuit against the proposed $18 billion merger.

http://www.forbes.com/newswire/2002/11/05/rtr777933.html

[raj2001]

Originally posted by John Corn
NEW YORK, Nov 5 (Reuters) - Hughes Electronics Corp. (nyse: GMH - news - people) and EchoStar Communications Corp. (nasdaq: GMH - news - people) could challenge a suit by U.S. antitrust enforcers aimed at blocking their proposed merger, The Wall Street Journal reported on Tuesday.

Citing industry officials, the Journal said the companies are leaning strongly toward challenging the Justice Department's recent lawsuit against the proposed $18 billion merger.

http://www.forbes.com/newswire/2002/11/05/rtr777933.html

Microsoft tried to fight the DoJ and look where it got them. Charlie needs to do what the USA Today article says he needs to do - damage control and repairing his image. But hey, Charlie is a gambler, so this move to countersue was more or less expected.

[John Corn]

Hughes, EchoStar Firm On Merger

Media reports say the two could file their own lawsuit as early as today, after the Justice Department and 23 states launched a suit in federal court, claiming that the $19.5 billion merger would hurt competition in the pay-TV industry. EchoStar (nasdaq: DISH - news - people ) and Hughes (nyse: GMH - news - people ) had offered to sell some of its satellite-TV assets to Cablevision (nyse: CVC - news - people ), in an effort to pacify regulators.


http://www.forbes.com/2002/11/05/cx_tm_1105video2.html

[cnsf]

Actually, this is a BRILLIANT move on Charlie's part. It ties up Hughes into either still going forward with the merger efforts and not focusing on customer base or forces them to give up the $600 million payout.

One of two things can happen, Echostar gets s huge jump on the market while D* stagnates OR he gets his $600 million back and could back out of the PanAmSat deal if Hughes decides to forego the suit.

I'm not a fan of the merger, but Charlie strategised well on this one. Let's hope it translates into NFL Sunday ticket and YES Network for all!!!!!

[Curtis0620]

Only until Jan 21st, then Hughes walks away from the deal and Charlie must pay.

[platinum]

Know that Hughes and Echostar are challenging this in court, what are the odds of the merger happening?

[Curtis0620]

None

[drjake]

Even if the odds of winning in Court are reasonable, odds of the merger happening are slight. As I said, as a Dish Retailer, I do not support the merger. However, as a lawyer, I think that the DOJ misapplied the antitrust laws. That being said, an antitrust case takes years to resolve and I don't believe that GM/Hughes will stay in that long.

[platinum]

I won't be surprised if Hughes and Echostar agree to a lesser buy out of pan am sat and a reduced break up fee. This would be in the best interest of both companies.