EchoStar shares bounce on rumors of acquisition by AT&T

Shares of satellite provider EchoStar Communications Corp. surged more than 25% yesterday, prompted by speculation that the company may be purchased by AT&T Inc.
TheStreet.com reported that AT&T is close to a deal with EchoStar for a $29.5 billion buyout, citing a “source familiar with the discussions.”
Neither company has offered comment on the report.
EchoStar’s stock had been trading at around $40 per share before the news, but shot up to near $50 after the report. The company’s stock settled back down to around $43.30 per share today. AT&T’s stock took a hit on the news, dropping from a per-share price above $39 to less than $38 yesterday. The company’s stock was just below $38 per share today.
EchoStar announced in late September that it plans to split itself into two publicly traded companies: one to run its Dish Network television service and another that would control the company’s technology and infrastructure assets as well as Sling Media, which EchoStar acquired earlier this year.
EchoStar and fellow satellite company DirecTV Group Inc. made the largest up-front payments-$972.5 million-on last year’s advanced wireless services auction. The companies bid aggressively for spectrum in early rounds, but dropped out of the bidding after about a week.