GM begins DirecTV talks with EchoStar

NEW YORK - General Motors has begun negotiations with EchoStar about the sale of rival US satellite pay-TV operation DirecTV, casting doubt over Rupert Murdoch's bid for the company.

The car giant is said to have contacted the US's second-largest satellite TV operator last week to discuss its unsolicited $30bn (£21bn) offer for its larger rival.



Murdoch's bid had been seen as a sure thing until a week ago when EchoStar launched an 11th-hour counter-bid. EchoStar had held earlier talks with executives at DirecTV and its parent Hughes, a division of GM, but these had come to nothing.



EchoStar's bid could prove popular with Hughes shareholders because they would be entitled to a premium after the deal is completed. However, News Corporation's deal offers GM around $7bn (£4.9bn) in cash. Realising cash from Hughes is believed to be one of the main reasons GM put the business up for sale last year.



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