EchoStar shares go stratospheric on AT&T takeover rumours
24 Nov 2007
Speculation that telecom giant AT&T is to buy satellite TV company EchoStar Communications has sent the latter''s shares into a tizzy. EchoStar shares have jumped 19.2 per cent to $47.49. The company owns and operates the DISH Network.
Analysts say there is a 65 per cent chance that AT&T will buy the company in the next 12 months. The spurt in share prices came after press reports on Monday 19 November that a deal was in the works.
Barron magazine''s ''The Trader'' column said AT&T is quickly trying to put together a bid before the end of the year that will convince EchoStar''s billionaire founder and head Charles Ergen.
Other media reports said the two companies were finalising the terms of a $29.5 billion buyout deal that could be concluded this week. Reports claimed that negotiations have resulted in a final likely price of between $64 to $68 a share.
Initially targeting rural markets, Echostar took advantage of the roll-out of local channels to successfully extend its reach into metropolitan areas. It is now the fourth-largest and among the fastest growing multi-channel video distributors in the industry.
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