Liberty Media Corp. (LMCA: Quote) has raised its stake slightly in satellite radio company Sirius XM Radio Inc. (SIRI: Quote) to 49.8 percent. John Malone’s Liberty Media, Sirius’ largest shareholder, is awaiting clearance from the Federal Communications Commission to exercise control over the company.
In a filing with the U.S. Securities and Exchange Commission, Liberty Media said it has increased its stake in Sirius by 30.96 million shares, at an average price of $2.66 per share.
In early September, Liberty Media said it increased its stake in Sirius XM Radio to 49.7 percent from 49.2 percent. Liberty Media became Sirius’ largest shareholder in 2009 after it gave the company a $530 million loan to help it stave off bankruptcy.
Terms of that transaction allowed Liberty Media to convert the loan into preferred shares, but prevented the company from owning a stake of more than 49.5 percent in Sirius. That provision expired in March this year.
In late October, Sirius said that Mel Karmazin will step down as chief executive of the satellite radio company on February 1, 2013, following the expiration of his current employment agreement and after a transition period. Karmazin will also leave the Sirius board of directors at that time.
Karmazin’s departure will enable Malone to go ahead with his plans to spin off Sirius as a publicly traded company after he acquires a controlling stake.
LMCA closed Friday’s trading at $103.39, up $2.26 or 2.23 percent on a volume of 823,298 shares.
SIRI closed Friday’s trading at $2.69, up $0.04 or 1.51 percent on a volume of 85.73 million shares.
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by RTT Staff Writer
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