XM Says It May Need to Raise Money

XM Satellite Radio Holdings Inc., the biggest U.S. satellite-radio service, said it might need to raise money to pay for a fourth satellite. Shares of the company, which never has turned a profit, dropped as much as 24%.

XM also said its second-quarter net loss widened to $161.9 million from $117.2 million. On a per-share basis, the loss was unchanged at $1.38 after XM increased the number of shares outstanding.

Washington-based XM has two satellites in orbit and has said it needs a third to deliver service through 2008. A fourth satellite, which would serve as a spare, might require XM to raise capital, the company said.

XM's shares fell $2.75 to $10.52 on Nasdaq.