NEW YORK, Sept 23 (Reuters) - A key investor advisory group on Tuesday urged General Motors Corp. shareholders to approve the automaker's planned spin-off of Hughes Electronics Corp. , the U.S. satellite television operator slated to merge with News Corp. Ltd.
Institutional Shareholder Services said based on its review, the planned spin-off and merger "warrant shareholders support," according to a copy of the ISS report obtained by Reuters.
If approved, the Hughes separation would precede News Corp. , the Australian media conglomerate controlled by Rupert Murdoch, purchasing GM's 19.8 percent economic interest in Hughes and an additional 14.2 percent in the company from shareholders for $6.6 billion.
The ISS recommendation follows a ruling from the Internal Revenue Service earlier this month that the planned distribution of Hughes stock to shareholders would be tax-free.
ISS serves as an advisor to a number of institutional investors and provides recommendations on how to vote on some shareholder proposals.