In Wake Of Dish Merger, EchoStar’s Beleaguered Stock Zooms 35% As Company Explores M&A Scenarios
deadline.comShares in EchoStar, which just completed a long-anticipated merger with Dish Network, have jumped more than 35% today after the company said it is officially reviewing its strategic options.
While that may not mean an M&A deal is imminent, the hiring of Houlihan Lokey and White & Case “to assist the company in evaluating potential strategic alternatives” was cheered by Wall Street.
Volume was nearly 10 times normal levels and the intraday gain, according to Bloomberg, was the stock’s biggest since 2008. Trading at $17.21 at mid-day, the stock is at its highest level since last September.
In a press release, EchoStar also announced “a series of strategic transactions to further unlock incremental strategic, financial and operating flexibility.” Those moves included transferring select wireless spectrum licenses into a new EchoStar entity and creating a new unit for 3 million pay-TV subscribers and freeing that division from debt covenants.
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