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Deciding vote in XM-Sirius deal makes offer



By JOHN DUNBAR, AP
17 July 2008 @ 06:17 pm EST

WASHINGTON - The potential deciding vote in the government's review of the $3.1 billion merger between satellite radio companies XM and Sirius told The Associated Press he will vote in favor of the deal if the companies agree to tougher conditions.


FCC XM Sirius
In this March 20, 2008 file photo, a sign for XM Satellite Radio hangs over its exhibit space at the New York International Auto Show in New York. The potential deciding vote in the U.S. government's review of the $3.1 billion merger between satellite radio companies tells The Associated Press he will vote in favor of the deal if the companies agree to tougher conditions. (AP Photo/Mark Lennihan, file)
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So far, two of the five members of the Federal Communications Commission have voted to approve Sirius Satellite Radio Inc.'s buyout of rival XM Satellite Radio Holdings Inc. That is one vote shy of a majority.

FCC commissioner Jonathan Adelstein, a Democrat, wants the companies to cap prices for six years and make one-quarter of their satellite capacity available for public interest and minority programming, among other conditions.

If the companies agree, Adelstein told the AP that he will support the deal.

Adelstein circulated his recommended conditions among the other four commissioners Thursday. His proposal seeks stronger concessions than the companies offered voluntarily one month ago. That offer led to FCC Chairman Kevin Martin's recommendation that the deal be approved.

Robert McDowell, a Republican, has since joined Martin in recommending approval. Deborah Taylor Tate, also a Republican, is undecided and had been considered the possible swing vote.

Tate's office did not respond to a request for comment nor did Martin's.

Commissioners are able to vote on items "on circulation," meaning by way of computer, rather than at a public meeting. Those votes are generally not made public until all have been cast.

Adelstein has been a vocal opponent of big media mergers, so his offer is somewhat surprising. But with strong odds that Tate eventually would vote yes, his move would make the deal more palatable for critics.

"It's critical that if we're going to allow a monopoly, that we put in adequate consumer protections and make sure they're enforced," Adelstein said.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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