Sirius (SIRI) Says Liberty (LMCA) is Skipping Rules in 'De Facto' Control Effort

April 18, 2012 9:15 AM EDT
Sirius XM Radio (Nasdaq: SIRI) has found itself in a battle royale with large holder Liberty Media (Nasdaq: LMCA).

Coming off of a sweet victory versus "shock jock" DJ Howard Stern on Tuesday, Sirius is now professing to the Federal Communications Commission that Liberty hasn't taken the proper steps required in order to gain "de facto" control of the company.

Corporations will seek the "de facto" indication in an effort to take majority control of another company without a stake over 50 percent. Liberty currently holds convertible preferred shares which would give it a 40 percent position in Sirius. However, Sirius argues Liberty has not converted the shares to give it the full position, and is currently limited to less than half of total Board seats.

Ahead of the bell, Sirius shares are indicated about 0.9 percent lower.

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