STATES AND SHARPTON OPPOSE ECHOSTAR-DIRECTV DEAL
Opposition to EchoStar takeover of DirecTV continued to mount, as group of 30 state attorneys gen. moved closer to filing lawsuit to stop merger, industry sources said. Group could file suit within month, after weeks of trading information and concerns about deal in series of conference calls. It’s concerned that EchoStar will have monopoly in rural areas where some consumers have no access to cable and limit choices of consumers in urban areas, group told U.S. Atty. Gen. John Ashcroft in Nov. letter. EchoStar denies charges. “We welcome the discussion of our merger,” spokesman said: “They're in a learning mode. Once we have an opportunity to discuss it with them, we think they'll see the enormous benefits that the merger will provide, such as more cities served with local channels, more HDTV and a faster rollout of high-speed Internet access that they would not get without the merger.” Company also said deal would give it more capacity to offer more local channels.
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Led by Mo. Attorney Gen. Jeremiah Nixon, group reportedly is doing due diligence on prospects of suit. Spokesman declined to deny or confirm reports. Conn. Attorney Gen. Richard Blumenthal told reporters Fri. that “we're still in the investigatory phase, but we're aware time is important… we're working diligently and actively to reach a conclusion.” Spokesman for Nixon said group was doing due diligence and “there are several attorneys general who are deeply concerned about proposed merger who are convinced, based on what we know so far, that the merger is anticompetitive and should be stopped.” However, he reiterated no final decision on lawsuit had been made. Spokesman for Attorney Gen. Ken Salazar of Colo., where EchoStar hq is located, said he hadn’t decided whether he would support lawsuit. Hughes spokesman said deal was “going to be a big benefit to consumers.”
Meanwhile, civil rights leader Al Sharpton led 100 sign- carrying protesters outside Washington hq of EchoStar Mon. where there are only handful of employees. Sharpton said he was concerned deal would create “monopoly” and “unfair advantage in marketplace.” He also attacked DISH network programming: “I think they turn down people like the WORD Christian Network, but they carry all kinds of pornography. They've been able to manipulate the system. We want them to know they just can’t lobby the FCC… We want them to be responsible and open up the airways” to diversity of voices. Sharpton said he would return Fri. with hope of meeting with other groups that oppose deal and with FCC officials.