Douglas County-based EchoStar Communications surged the most in nearly five years after reported today that AT&T is offering to buy the company for $55 a share.
Shares of the nation’s No. 2 satellite television operator climbed $2.69, or 6 percent, to $46.17, during midday trading.
AT&T and EchoStar are in talks over a possible takeover, and EchoStar is holding out for $65 a share, reported today, citing unnamed sources.
Acquiring EchoStar would give AT&T a video arm to complete its triple-play of TV, phone and Internet services. AT&T already resells EchoStar’s Dish Network service.
EchoStar spokeswoman Francie Bauer and AT&T spokesman Michael Coe declined to comment.
EchoStar announced this week that it may split into two publicly traded firms, with one focusing on consumer business and the other on wholesale.
Some analysts said the spinoff positions Dish Network to be acquired by AT&T.
“We believe this restructuring improves the chances that AT&T will eventually acquire (EchoStar’s) video business,” wrote UBS analyst John Hodulik in a research note.
EchoStar also announced plans this week to buy Sling Media, makers of the Slingbox, for $380 million.
“It seems to us a matter of when, not if, AT&T acquires EchoStar,” said Thomas Eagan, a New York-based analyst with Oppenheimer & Co., in a note today.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
Bloomberg News contributed to this report.
