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Revision History For: Hughes Electronics (GMH)

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Return to Hughes Electronics (GMH)
Trying to understand what is happening with this company in the current buyout talks with Raytheon\Grumman.

Hughes has the defense business which is being sold.

They also own Delco Auto Parts and their Space and Communication business, including DirecTV and DirecPC, which is not being sold.

Current price is around $63/share of GMH.

Anyone have a hunch on how the valuation on these shares will change?

Will you get cash/stock for the defense portion and retain your interest in the other businesses?

Also, found the following excerpt in the General Motors 1995 annual report:

"GM's Certificate of Incorporation provides, generally, that if at any time GM should sell, liquidate, or otherwise dispose of substantially all of EDS,Hughes, or the other business of GMHE, shares of the Corporation's $1 2/3 parvalue common stock will automatically be exchanged for Class E or Class H common stock, respectively."

"In the event any of the aforementioned exchanges were to occur, the GM Certificate of Incorporation provides that the Class E or Class H common stockholders would receive $1 2/3 par value common stock having a market value at the time of the exchange equal to 120% of the market value of the Class E or Class H common stock exchanged."

This looks like a pretty attractive premium on the GMH shares.

Del Rickel