Sirius ought to have a Richer Offer From Liberty Media
On Monday, Sirius XM shares soared 7 percent to $3.83 as investors seemed to conclude that a buyout offer from Liberty Media is too low and headed higher.
Multiple shareholders on Monday disparaged the offer of $3.68 that Liberty made public on Friday, which included famed consumer activist Ralph Nader, who called the proposal "ludicrous" in a statement issued via press release. Nader also threatened legal action.
Nader said, "Sirius was trading over $4.00 a share just a few weeks ago and is a very fast growing company with bright indicators and registers four stars by Standard & Poor's which recommends a buy." "I am sure that I along with other shareholders in Sirius XM will be interested in a legal challenge to John Malone's company for lowballing Sirius XM's shareholder value."
Liberty, offered last week to convert shares of Sirius into what would be new shares of Liberty Series C nonvoting stock. Liberty already owns a controlling stake in Sirius XM. The deal would make Sirius XM a wholly owned subsidiary of Liberty but the proposed exchange rate values Sirius at only $3.68 a share, which was a 3 percent premium to Friday's closing price but a 4 percent discount to where the stock closed on Monday.
New Zealand News
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