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Article: ECHOSTAR MERGER DECLARED DEAD HUGHES ELECTRONICS NETS $600 MILLION TO BREAK UP PACT.(Business)
- Article from:
- Rocky Mountain News (Denver, CO)
- Article date:
- December 11, 2002
- Author:
CopyrightCOPYRIGHT 2002 Rocky Mountain News. All rights reserved. Reproduced with the permission of Dialog LLC by Gale Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Steve Caulk
ROCKY MOUNTAIN NEWS
EchoStar Communications and Hughes Electronics officially put their failing merger out of its misery Tuesday, and investors declared EchoStar the winner.
Even after Littleton-based Echo- Star transferred $600 million into Hughes' bank vault - the fee it had to pay to break up the deal to merge the satellite- TV competitors - investors sent EchoStar's stock up 10.7 percent. Hughes' stock, meanwhile, sank 1.7 percent, mostly because of the surprise news that EchoStar won't purchase Hughes' subsidiary PanAmSat as part of the termination agreement.
The original agreement called for EchoStar to pay ...