Sirius Satellite Radio Inc. completed its purchase of XM Satellite Radio Holdings Inc. in an all-stock takeover valued at $2.76 billion. The shares dropped on investor concern over new stock and debt offerings.
The company will change its name to Sirius XM Radio Inc. and continue to be led by Sirius Chief Executive Mel Karmazin.
Existing radios will continue to work and subscribers may keep their current service package, Sirius said Tuesday. The combined company also will sell new programming packages that offer selections from both services and that give consumers the choice of which channels they receive.
Investors in Washington-based XM received 4.6 Sirius shares for each XM share. Sirius fell 30 cents, or 16 percent, to $1.58, the lowest level in almost five years. It was the most heavily traded stock on the Nasdaq.
