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Sirius, XM Delay Annual Meetings, Extend Agreement

5/05/2008 02:00:00 AM Eastern

Sirius Satellite Radio and XM Satellite Radio both postponed their 2008 annual shareholder meetings set for this month until they find out what the decision is about their merger.

XM's meeting was scheduled for May 23 and Sirius' meeting was planned for May 20.

Commissioners at the Federal Communications Commission (FCC), which has yet to rule on the merger, are expected to meet on May 14. No agenda has yet been set for the meeting, although published reports say that satellite radio is not likely to be on the agenda, casting further uncertainty on when this long pending merger might see a conclusion.

While waiting for the FCC, both sides also decided for the second time not to exercise their rights to terminate their merger agreement. The companies said on Wednesday they would continue to extend the agreement "as necessary, for rolling two-week periods unless either side notifies the other of its intention not to extend."

In other news, Directed Electronics has amended certain terms and extended its distribution agreement with Sirius to Jan. 31, 2009, from August 2008.

The amendment also contains certain provisions that further reduce Directed's exposure to satellite radio product-warranty costs.

And Sirius announced its second deal to deliver PC-free access to Sirius Internet Radio via networked music players in the home via Logitech's Squeezebox Duet network music system, Squeezebox network music player and Logitech network music player.

The devices connect to home audio systems to stream music from Internet radio stations and music services through a networked broadband modem. The devices also stream music stored on a networked PC. — Reporting by Amy Gilroy, Joseph Palenchar and Steve Smith

For continuing merger coverage see www.TWICE.com.