Sirius Shareholders Pass Reverse Split, Additional Shares
by John Paczkowski
Posted on December 18, 2008 at 11:02 AM PT
Well, what do you know? Sirius CEO Mel Karmazin pulled it off: At the satellite radio outfit’s shareholder meeting today, a proposal to enact a reverse stock split and another to increase the number of authorized shares of Sirius XM (SIRI) common stock from 4,500,000,000 to 8,000,000,000 passed. The reverse split plan could reduce the number of outstanding shares to a range of 65 million to 320 million shares from 3.2 billion.
What’s more, the company reaffirmed its 2009 revenue estimate of $2.7 billion. Quite a victory for Karmazin, who’s been facing a fair bit of shareholder discontent and more than a few calls for his ouster.
Comments
Individual investors can make noise but they don’t have the voting power of Institutions; who in this case voted for the Reverse and Additional Shares prior to the meeting, and the guidance presentation. Otherwise the vote results would not have been announced days from now.
Unlike at Yahoo where the institutions worked with management and rejected Microsoft’s offer, over the objections of Individuals.
Posted by Jeff Stevens at December 18th, 2008 at 12:56 pm