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NEW YORK, Oct 18 - Standard & Poor's Ratings Services said today that its ratings on EchoStar Communications Corp. (nasdaq: DISH - news - people)(B+/Watch Pos/--), Hughes Electronics Corp. (nyse: DISH - news - people) (BB-/Watch Neg/--), and PanAmSat Corp. (nasdaq: DISH - news - people) (BB-/Watch Neg/--) all remain on CreditWatch pending receipt of further clarity on business combination transactions involving the three companies.
The FCC recently decided not to approve the proposed merger between EchoStar and Hughes and designated the merger application for administrative hearing. Although the likelihood of a merger is diminished, the companies still have the opportunity to continue working towards gaining merger approval. EchoStar and Hughes are expected to propose structural remedies to the deal, possibly including the transfer of satellite orbital slots and spectrum to a third-party competitor in order to receive government approval. However, given the FCC's unanimous vote declining to approve the original transaction, the companies could face long odds in obtaining approval, even with concessions.
http://www.forbes.com/newswire/2002/10/18/rtr758170.html
The FCC recently decided not to approve the proposed merger between EchoStar and Hughes and designated the merger application for administrative hearing. Although the likelihood of a merger is diminished, the companies still have the opportunity to continue working towards gaining merger approval. EchoStar and Hughes are expected to propose structural remedies to the deal, possibly including the transfer of satellite orbital slots and spectrum to a third-party competitor in order to receive government approval. However, given the FCC's unanimous vote declining to approve the original transaction, the companies could face long odds in obtaining approval, even with concessions.
http://www.forbes.com/newswire/2002/10/18/rtr758170.html
