Sirius Completes XM Merger; Shares off 42 Percent in 4 Days

Sirius (SIRI) and XM (XMSR) this morning completed their merger, at long last. Terms of the deal called for XM holders to get 4.6 SIRI shares for each share of XMSR.

But are investors are celebrating? No, they are not. Instead, they are in a selling frenzy. SIRI shares, in fact, are down 32 cents, or 17 percent, to $1.56, and have now now dropped 42 percent in the last four trading days.

Sirius this morning repeated its previous forecast that the company expects to generate $400 million in synergies in 2009. It expects to post adjusted EBITDA of more than $300 million in 2009, and to reach positive free cash flow–before satellite expenditures–for the full year in 2009.

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