News

XM Deal Results In Stock Dilution

1/05/2003 7:00 PM Eastern

Deutsche Bank Securities analyst Karim Zia maintained his "buy" rating but lowered his 12-month price target on XM Satellite Radio, after the company secured new financing from one of its largest shareholders, General Motors Corp. According to the deal, XM will receive $200 million in new funds and $250 million in payment deferrals and credit facilities from GM. But the deal will result in increased dilution of XM stock, prompting Zia to reduce his price target on XM shares from $6 each to $5.50 apiece.

September