Intel stock spikes after report of possible US government stake
Investing.com -- EchoStar Corp . (NASDAQ:SATS) stock soared 45% after President Donald Trump intervened in a dispute between the satellite communications company and the Federal Communications Commission over valuable spectrum licenses.
The president reportedly stepped in to push EchoStar Chairman Charlie Ergen and FCC (BME:FCC) Chairman Brendan Carr to resolve their ongoing disagreement, according to Bloomberg. Trump expressed concern about a major American company potentially going bankrupt, stating it would create uncertainties for other businesses.
The intervention came after Ergen met with Carr at FCC headquarters on Wednesday, where the FCC chairman reportedly told Ergen that EchoStar needs to start selling some of its spectrum licenses or risk losing them. The following day, Ergen met with Trump at the White House, during which the president called Carr to join the meeting in the Oval Office.
The FCC launched an investigation in May into whether EchoStar was meeting certain obligations for its wireless and satellite spectrum rights. In response, the company has skipped bond coupon payments and considered filing for bankruptcy, claiming the FCC’s threats have "effectively frozen our ability to make decisions" about its 5G network buildout.
EchoStar’s bonds also saw significant movement, with its 10.75% bonds maturing in 2029 rising about 5.4 cents on the dollar to 108.5 cents, making them among the biggest gainers in US high-yield trading on Friday.
The discussions reportedly included exchanges about Ergen’s political donations and whether EchoStar’s DISH satellite TV service carried conservative news outlets like Newsmax.
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