(Reuters) – Shares of EchoStar surged as much as 41% on Wednesday after the satellite operator said it had hired advisors to help evaluate strategic alternatives following its merger with Dish Network.
The merger, which was completed on Dec. 31, was engineered by telecom mogul Charlie Ergen to tackle growing competition from larger U.S. carriers.
EchoStar also announced the transfer of several wireless spectrum licenses to a wholly owned subsidiary, EchoStar Wireless Holding, following the merger.
The company said it has hired Houlihan Lokey and White & Case LLP as financial and legal advisors to help it evaluate strategic options.
The satellite operator did not immediately respond to a request for details about its plans.
“In the absence of explanations from the company itself, we’re left to try to figure it out on our own – but what is most important here is that the assets simply aren’t being divided up in a way that would facilitate a sale,” brokerage MoffettNathanson said in a note.
(Reporting by Harshita Mary Varghese and Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)
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