Kudelski shares take off on news of US deal
Shares in the digital technology group, Kudelski, were up around seven per cent on Monday after news that its biggest client, Echostar, is to buy General Motors's satellite television unit.
Kudelski’s stock closed at SFr98.90 after opening the session at SFr105. Analysts said the American deal had the potential to substantially increase Kudelski’s client base. Its US customers currently number 23 million but analysts say the Echostar transaction could boost the figure to 34 million.
General Motors agreed on Sunday to sell its satellite television subsidiary to Echostar for $25.8 billion after a rival bid from Rupert Murdoch’s News Corp was withdrawn.
However, the transaction is expected to come under close scrutiny from US regulators as it would bring 16 million satellite television subscribers, a majority of the US market, under single ownership.
The deal is a significant setback for Rupert Murdoch who wanted to combine the unit with his other global broadcast assets.
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