Sirius Satellite Radio Inc

A Senate committee chairman said Sirius Satellite Radio Inc. had "a steep hill to climb" in showing that its proposed purchase of XM Satellite Radio Holdings Inc. would not hurt competition in the audio entertainment market. Sirius Chief Executive Mel Karmazin told the Senate Commerce, Science and Transportation Committee that a combined satellite radio provider would benefit consumers by letting them access both companies' services for a diminished price.

The chairman of the U.S. Senate's antitrust subcommittee on Wednesday urged regulators to block Sirius Satellite Radio Inc.'s proposed acquisition of XM Satellite Radio Holdings Inc. Herb Kohl (D-Wis.) said he had sent a letter to the Justice Department and the Federal Communications Commission calling on them to oppose the deal on grounds that it would cause "substantial harm to competition and consumers."

Satellite radio providers Sirius and XM said Monday they could offer a variety of subscription packages that cost as much as 46% less than current plans if their merger is approved. In a bid to allay concerns among lawmakers that their merger would raise prices and limit programming choices, the companies announced several new packages that they say offer subscribers more choice than they can individually.

To hear the executives at Sirius and XM talk, peace has broken out in the world of satellite radio. The president of XM Satellite Radio Holdings Inc., Hugh Panero, was the first to make nice. In November, when Sirius Satellite Radio Inc. hired Mel Karmazin as chief executive, Panero publicly welcomed the former Viacom Inc. executive, saying he brought "a new level of maturity" to the fledgling industry.

* Sirius Satellite Radio Inc. said its loss widened to $147.8 million in the fourth quarter as costs rose to attract subscribers and subsidize automakers that install its units. The loss amounted to 14 cents a share, compared with $122.1 million, or $1.74, a year earlier.

Sirius Satellite Radio Inc. plans to raise about $290 million by selling common stock and convertible notes, the company announced a day after saying it had signed talk show host Howard Stern to a five-year contract. New York-based Sirius said it would offer 25 million shares of common stock and $200 million in convertible notes for sale. The company will use the cash for general corporate purposes, including programming. Shares of Sirius rose 13 cents to $4 on Nasdaq.

Sirius Satellite Radio Inc. said it raised about $321 million by selling common stock and convertible notes. The company said last week that it planned to raise about $290 million in the offerings. Sirius has said it will use the cash for general corporate purposes including programming. Sirius on Oct. 6 signed Howard Stern for a five-year contract beginning in 2006. Stern's show will cost $100 million a year to produce and distribute, the company said. Shares of Sirius rose 1 cent to $3.

* Sirius Satellite Radio Inc. agreed to pay former Viacom Inc. President Mel Karmazin $1.25 million a year in salary to be the company's new chief executive. The five-year contract also calls for Karmazin to receive options for 30 million shares in Sirius. Karmazin also told Fox News Channel that he bought 1.5 million Sirius shares.

In unusually heavy trading, shares in Sirius Satellite Radio Inc. fell 23% on Wednesday after two analysts said the stock was expensive and lowered their recommendations. Sirius fell $2.11, to $6.90, on Nasdaq. About 580 million shares changed hands, the most in a single stock since July 2002. Shares of Sirius, the second-largest pay radio service behind XM Satellite Radio Holdings Inc.

The chairman of the Federal Communications Commission is recommending approval of a $5-billion merger between the nation's two satellite radio broadcasters in exchange for concessions that include turning over 24 channels to noncommercial and minority programming. That condition -- along with others, including a three-year price freeze for consumers -- convinced FCC Chairman Kevin J. Martin on Sunday to recommend approval for Sirius Satellite Radio Inc.'