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Sirius Approves Reverse Stock Split

12/18/2008 03:36:00 PM Eastern

New York — Sirius XM said its stockholders approved a possible reverse stock split of its common stock and other proposals.

The reverse split may occur any time before Dec. 31, 2009, by a ratio of not less than one-for-10 and not more than one-for-50.

Also at its annual meeting of stockholders today, the existing board of directors was re-elected and the company authorized increasing the number of shares from 4.5 billion to 8 billion.

At the meeting, Sirius XM CEO Mel Karmazin told shareholders that Sirius XM will have cut 22 percent of its work force by the end of the year, removing 458 people from its staff for a total of 1,600, according to the Associated Press (AP).

Sirius also reaffirmed revenue forecasts of $2.4 billion this year and $2.7 billion in 2009, even as car sales in November fell by 37 percent, said the AP.

Sirius XM stock is currently trading at 14 cents per share and Sirius said its shares must trade at $1 or higher to continue listing on the Nasdaq, said the AP.

Sirius XM did not immediately respond to a TWICE inquiry.