Corp. says it will not be going ahead with plans to merge its Hughes Electronics Corp. with EchoStar Communications Corp.
GM says the merger was canceled because it could not be completed within the allotted timeline due to objections. The Federal Communications Commission, along with 23 U.S. states, the Dept. of Justice and the District of Columbia and Puerto Rico all took exception to the proposed merger, blocking it for fear it would create a monopoly in the U.S. satellite television market.
In response to the canceled merger, Hughes President and CEO Jack A. Shaw says, "We continue to believe that the proposed merger would have been a victory for consumers nationwide and for our shareholders. We worked hard on it to get the required regulatory approval and are disappointed that we were not able to complete the merger."
Under terms of a settlement dissolving the merger, EchoStar will pay $600 million in cash to Hughes, which will hold on to its 81% ownership of PanAmSat.