Hughes CEO Denies Buyout Rumors
Hughes Electronics President and CEO Jack Shaw denied that certain executives are pondering a buyout of the company's DirecTV unit if its pending merger with EchoStar fails to win approval from federal regulators.
In a letter sent to the Los Angeles Times, which reported on the rumored buyout on Wednesday, Shaw said, "rumors or speculation about a management buyout are simply that - no such alternative is being considered." Shaw also said in the letter that DirecTV President Roxanne Austin has denied statements in the L.A. Times article, attributed to "sources," that she had indicated to her top leadership team that a DirecTV management buyout is a possibility if the merger is not approved.
Shaw also said in the letter that the leadership at General Motors, Hughes, and all of its operating businesses, including DirecTV, "are firmly and fully committed to our proposed merger with EchoStar. The focus of the management team of Hughes and its operating businesses is to successfully complete the merger with EchoStar and to operate our company as efficiently and competitively as we can - delivering on our financial commitments and business plans."
The Los Angeles Times reported that executives at DirecTV have positioned a proposed buyout of the company as a better alternative to selling the satellite TV service to Rupert Murdoch's News Corp. if EchoStar can't win regulatory approval for the merger. News Corp. lost the biding war for DirecTV to EchoStar last October, but has surfaced again as the likely buyer if EchoStar can't complete the deal.
From SkyReport (Used with Permission)
In a letter sent to the Los Angeles Times, which reported on the rumored buyout on Wednesday, Shaw said, "rumors or speculation about a management buyout are simply that - no such alternative is being considered." Shaw also said in the letter that DirecTV President Roxanne Austin has denied statements in the L.A. Times article, attributed to "sources," that she had indicated to her top leadership team that a DirecTV management buyout is a possibility if the merger is not approved.
Shaw also said in the letter that the leadership at General Motors, Hughes, and all of its operating businesses, including DirecTV, "are firmly and fully committed to our proposed merger with EchoStar. The focus of the management team of Hughes and its operating businesses is to successfully complete the merger with EchoStar and to operate our company as efficiently and competitively as we can - delivering on our financial commitments and business plans."
The Los Angeles Times reported that executives at DirecTV have positioned a proposed buyout of the company as a better alternative to selling the satellite TV service to Rupert Murdoch's News Corp. if EchoStar can't win regulatory approval for the merger. News Corp. lost the biding war for DirecTV to EchoStar last October, but has surfaced again as the likely buyer if EchoStar can't complete the deal.
From SkyReport (Used with Permission)
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