AT&T Likely to Bid on EchoStar Communications, Barron’s Reports

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AT&T Likely to Bid on EchoStar Communications, Barron’s Reports

6:00 am on November 20, 2007 | Category: Business, Telecom Services, Television, Corporate

America’s largest telecom provider, AT&T Inc., is hoping to present satellite television company, EchoStar Communications, with an acquisition bid by the end of this year, according to Barron’s financial magazine.

EchoStar shares fell more than 20% in the first half of November, potentially making the company easier to acquire according to Barron’s.

In the past, AT&T has reportedly offered $65/share for the satellite TV provider, which was said to be holding out for at least $75. Its shares closed at a mere $39.83 on the NASDAQ Friday, but surged $47.49 yesterday on news of AT&T’s renewed interest.

AT&T is apparently hoping to complete the EchoStar acquisition well before the next U.S. presidential election, where a victory of the Democrats would likely mean increased scrutiny of mergers and acquisitions.

“Pushing a deal of this size through the regulatory system takes time, so it may have be done in a month or so, if it is to be done at all,” Barron’s reported.