Alcatel-Lucent, Thales

Alcatel-Lucent completed the transfer of Alcatel’s shares in Alcatel Alenia Space and Telespazio to Thales. Thales and Finmeccanica then combined their space operations under an entity dubbed the New Space Alliance, the companies announced April 10.

The moves follow the European Commission’s April 4 approval of Thales’ acquisition of Alcatel’s 67 percent share of Alcatel Alenia Space and its 33 percent Telespazio. Telespazio’s main shareholder is Finmeccanica. Alcatel Alenia Space will be renamed Thales Alenia Space."

Pascale Sourisse will remain president and CEO of the Thales Alenia Space joint venture company and join the executive committee of Thales. Giuseppe Veredice remains president and CEO of Telespazio.

"Thales and Finmeccanica welcome the decision announced by the European Commission," Pier Francesco Guarguaglini, Chairman and CEO of Finmeccanica and Denis Ranque, Chairman and CEO of Thales, said in a statement. "This agreement is now finalized, making the New Space Alliance between Finmeccanica and Thales a reality. The association of our companies in the space business will further enhance our leadership in satellite-based technologies and services."

Sirius, XM

Sirius Satellite Radio and XM Satellite Radio have received a request from the U.S. Department of Justice for more information about their proposed merger, XM announced in an April 12 filing with the U.S. Securities and Exchange Commission. This is a second request under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and extends the waiting period under the Act an additional 30 days.

Meanwhile, the U.S. Senate Committee on Commerce, Science and Transportation will hold a hearing on the Sirius-XM merger April 17, the fourth on Capitol Hill since the proposed deal was announced.

At the same time, analysts and other interested parties continue to put in their two cents on the merger and the definition of competition in the market.

Telecom Media and Finance Associates Inc. (TMF) did not take a stance on the proposed merger, but strongly disagreed with an April 3 release by Carmel Group that came out against the merger. The research paper was funded by the National Association of Broadcasters (NAB), which strongly opposes the XM-Sirius merger.

The research paper by Carmel Group "ludicrously overstates the case for opposing the merger and fundamentally misinterprets the competitive environment for satellite radio," TMF said in its April 10 release. "…We consider that the potential alternatives to satellite radio are, in essence, those technologies which provide (either live or recorded) in-vehicle audio content (i.e. talk, music, sports and information services such as news, traffic and weather)."

The Free State Foundation, a non-profit Maryland-based think tank, also challenged the NAB’s rationale for opposing the Sirius-XM merger.

"The notion that satellite radio constitutes a discrete market for purposes of assessing the merger’s competitive impact seems problematical — and to defy common sense," Randolph May, the Foundation’s president, said in a post on freestatefoundation.blogspot.com. "… I am not sure that the appropriate product market with respect to assessing the competitive impact of the XM-Sirius merger is not somewhat broader than strictly audio entertainment and information. Consider that both cable and DBS "multi-channel video programming distributors" offer many different channels of audio only programming. In today’s fast-changing technological and marketplace environment, perhaps the relevant market is the audio and video information and entertainment market."

Astro All Asia Networks

Malaysia’s Astro All Asia Networks signed a deal with India’s Maran Group to provide direct-to-home (DTH) TV services in India, Astro announced April 5.

Under the agreement, South Asia Entertainment Holdings Ltd., a wholly owned unit of Astro, will invest up to $166 million for a 20 percent stake in Sun Direct TV, a provider of DTH services across the country. Maran will retain an 80 percent interest in Sun Direct.

Service is expected to begin in the second half of 2007 using transponders on the Insat-4B satellite placed into orbit in March.

"There are over 65 million pay-TV homes [in India], and this market is expected to grow to over 150 million homes in the next decade," Astro CEO Robert Odendaal said in a statement. "We believe that DTH platforms coupled with the implementation of conditional access systems by cable networks will allow DTH services to expand rapidly in India."

Spacehab Inc.

Spacehab Inc. has been granted another 180 days to meet the minimum requirements to remain listed on Nasdaq, Spacehab announced. Spacehab has until Oct. 1 to meet the market’s requirements that a company’s stock bid price close at or above $1 per share for a minimum of ten consecutive trading days.

Spacehab’s first 180-day period to meet the requirements closed April 2. The price did top $1 per share for four consecutive days — Jan. 30 through Feb. 2 — but slipped and has not close at more than 70 cents since Feb. 26.

Separately, Spacehab appointed Mark Adams to the company’s board, filling a vacancy created by the retirement of former Spacehab president and CEO Michael Kearney. Adams serves as chairman, president and CEO of Advocate MD, a stock insurance medical liability carrier based in Austin, Texas.