Hughes Not Waiving Merger Exit Provisions

[Gregg Lengling]

EchoStar said it's willing to make room for the comment period at the Federal Communications Commission concerning its revised merger proposal, but it appears that merger partner Hughes isn't going to waive any merger provisions in the deal.

This week, the FCC said it will take comments on the revised DBS merger plan until Jan. 3. Reply comments on the new proposal are due to the FCC Jan. 21. The deadlines are tight ones for the DBS merger, given that DirecTV parent Hughes can walk away from the merger proposal on Jan. 21.

Said Hughes spokesman Richard Dore, "Both GM and Hughes are not waiving any of the termination provisions in the merger agreement." No further comment was offered by the company, which controls DirecTV.

Late Wednesday, EchoStar said with its new proposal at the FCC, the company is "willing to extend applicable termination dates in our contract to make allowances for the FCC comment period."

In October, the FCC and the Justice Department's antitrust division said they would block the EchoStar/DirecTV merger. The companies are offering concessions, including the divesture of spectrum and a satellite to Cablevision's DBS effort, Rainbow DBS.