FCC Gives Bird Buyer Thumbs Up

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The Federal Communications Commission has approved the sale of satellite operator PanAmSat Corp. to affiliates of Kohlberg Kravis Roberts & Co. LP, The Carlyle Group and Providence Equity Partners.

In a related move, DirecTV Group Inc. has reached an agreement with the same affiliates to resolve the effect of the failure of the Galaxy 10R PanAmSat satellite due to xenon ion propulsion failure. That deal reduces the purchase price payable to DirecTV Group for its equity interest in PanAmSat to approximately $2.6 billion, a decrease of $200 million.

PanAmSat shareholders are expected to approve the deal Friday at their annual meeting.