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Analyst: XM, Sirius Merger Likely to Pass Regulatory Hurdles

Bear Sterns analyst Robert Peck believes that a merger between XM and Sirius Satellite Radio may actually come to pass.

In a research note that revived speculation about a proposed merger between the two rivals, Peck wrote that he expects the two companies to push for a merger and that it would “likely pass” regulatory hurdles, according to the AP. FCC chairman Kevin Martin said in January that the FCC would not support a merger between the two satellite services.
While XM has more subscribers, Sirius has a higher market value, and the deal has been held up over disagreement about how much of the merged company XM and Sirius should own, Peck wrote.

Peck believes that such a merger would benefit XM considerably, and stock rose on Friday after the news.