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Technology Stocks
Hughes Electronics (GMH)
An SI Board Since January 1997
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277 15 0 GMH
Emcee:  Metacomet Type:  Unmoderated
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
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277it's happening. we just have to clear the doj, the fcc will be no problem. fterracin-10/29/2003
276Been holding GMH for awhile and find it awfully difficult to figure out a goal arrufff-9/18/2003
275read this, it's good for gmh tvweek.comterracin-9/17/2003
274hey guys, finally hughes might (will) be .... worth something again. if this deaterracin-8/29/2003
273It won't do any good to write management as they have a vested interest in srrufff-4/19/2003
272I think converted Hughes stock will do well too, but I think that's it worthshoe-4/19/2003
271hey guys, finally hughes might (will) be .... worth something again. if this deaterracin-4/17/2003
270Looks like GMH shareholders are shafted again by GM, whose Finance leader says wBill Murray-4/12/2003
269I would guess that GMH would be a good speculative buy if there's a buyout oPaul Senior-2/8/2003
268<b>SBC Said to Be in Talks to Buy DirecTV</b> February 8, 2003 By Glenn Petersen-2/8/2003
267Stock is nearer its lows than its highs, and arguments that professional investoPaul Senior-1/1/2003
266Please give us your thoughts as to why you're considering it a buy.Bill Murray-12/29/2002
265Anyone here seeing GMH as a buy now at current price? (I'm considering it.)Paul Senior-12/29/2002
264From this week's Barron's: <b>Looking for Liftoff</b> BattGlenn Petersen-8/5/2002
263It looks like Charlie is turning-up the PR on why the merger makes sense. TheseLee L.-2/26/2002
262Zoltan, thanks for the link. I had not seen it. I do agree with Jack Shaw in tLee L.-2/6/2002
261Here's the same article on yahoo news:!-1/31/2002
260I pm'd it to you. Pass it on.Zoltan!-1/31/2002
259Zoltan, I cannot access the article since I don't subscribe to the NYTimes. Lee L.-1/31/2002
258It's toast. Did you read the article? btw, the article didnZoltan!-1/30/2002
257<i>"Now, I think that there is less than a one-in-three chance,"Lee L.-1/30/2002
256Like I mentioned in the email, I think Murdoch will make quick work of DISH. He FR1-1/30/2002
255No. And yes. There will be two providers of satellite. Not one. So consumersZoltan!-1/30/2002
254Now that I think about, I actually heard some of the testimony. It didn't lFR1-1/30/2002
253The deal is given little chance. <i>...The day the deal was announced, ScZoltan!-1/30/2002
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