U.S. Electronics files suit, seeks information related to merger of XM, Sirius

By Lisa Kerner

Charlotte, N.C., June 4 - U.S. Electronics, Inc. has filed a Freedom of Information Act suit seeking the release of key documents relating to Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.'s past compliance with Federal Communications Commission (FCC) regulations, it was announced on Wednesday.

"Public consideration of these companies' compliance with FCC regulations in the past is critical to consideration of their pending request to merge - particularly in determining how conditions such as 'open device' should be structured to avoid future non-compliance," U.S. Electronics spokesperson Kathy Wallman said in a news release.

"These companies are fighting awfully hard to keep these documents from seeing the light of day; it makes you wonder what they are trying to hide," Wallman added.

U.S. Electronics, a New York consumer electronics distributor, said it's been calling for an "open device" condition in cooperation with Federal legislators, public interest groups and businesses in the industry.

An open device condition allows for open and fair competition in the design, manufacture and distribution of satellite radio hardware, the company's news release noted.

On Feb. 20, 2007, Sirius and XM entered into a definitive agreement to combine in a tax-free, all-stock merger of equals valued at an estimated $13 billion, including net debt of about $1.6 billion.

In March, the U.S. Department of Justice's Antitrust Division announced that the proposed merger of XM with Sirius is not likely to substantially lessen competition and that the transaction is not likely to harm customers.

Sirius is a New York-based satellite radio service provider. XM is a satellite radio services company located in Washington, D.C.

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