EchoStar, Hughes Continue DirecTV Talks13 Jun, 2001 By: Hive News
EchoStar Communications Corp. and General Motors Corp. are still in talks about unitingEchoStar and satellite broadcast rival DirecTV, according to a new court filing, reported the Associated Press.
The motion was filed in a federal antitrust lawsuit EchoStar launched in Denver against GM's Hughes Electronics Corp. subsidiary, which owns DirecTV. Lawyers for Hughes and EchoStar asked this week to delay action on the lawsuit until Aug. 14.
"Recently, representatives of GM and EchoStar have conducted preliminary discussions as to whether a transaction leading to a business combination of EchoStar and DirecTV would be mutually desirable," the court document said, according to the AP.
The Wall Street Journal reported Wednesday that UBS Warburg and Morgan Stanley Dean Witter & Co. may loan EchoStar $3 billion to support a $5.5 billion to $6 billion bid by EchoStar for Hughes.
GM has also been negotiating with Rupert Murdoch's News Corp. over Hughes but has said it would consider alternative offers.