Not sure if I qualify as a fplks but in the interest of trying to spur some debate before the holiday, here goes: a.merger approved stock goes up short term and long term b.merger denied stock goes down short term, see c,d,e, and f below c.merger denied,gmh spun off at a more opportune time stock goes up long term, big time d.merger denied,gmh stays under gm stock goes up over real long term e.merger denied,gmh gets sold to rupert at a premium and stays out of bag-o-bones stock goes up long term f.merger denied,gmh sold to rupert and is included in bag-o-bones all gmh shareholders get screwed as rest of bag-o-bones drags new stock down
I like scenario C. I don't think this merger will go through. The only fear I have is how long it will take for GM to complete a deal with Rupert. That means another year of sitting and waiting. I the meantime, DTV's numbers will continue to fall off and loose even more customers and market share to Echo*. I think the best action would be for GM to do a true spin off of Hughes Electronics without any merging. Any comments?