9-18-2012
An SEC filing shows that Liberty has converted around half of its preferred shares into common shares, diluting its ownership total just a bit. The recent filing also means that Liberty retains 3 of its 5 board seats, still giving it veto power. Liberty plans to take control of Sirius XM but has not officially announced what it will do with the company once it does. CEO Mel Karmazin has indicated he will stay on until the transfer of control is complete but is not willing to discuss a new deal until then. His contract expires at the end of 2012.
Liberty became Sirius' largest shareholder in 2009 after giving the company a $530 million loan to prevent it from going into bankruptcy. The transaction allowed Liberty to convert the loan into preferred shares, but a provision, which expired a few months ago, prevented the company from owning a stake of more than 49.5 percent of Sirius.
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