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DirecTV sale near
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October 18, 2001: 2:52 p.m. ET
Hughes CEO says talks with EchoStar and News Corp. are nearing 'home stretch.'
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NEW YORK (CNNmoney) - The protracted bidding war between EchoStar Communications Corp. and News Corp. for DirecTV may be near its conclusion.
General Motors has continued negotiations during the past weeks with both EchoStar and News Corp., which are attempting to buy its Hughes Electronics unit and gain control of DirecTV.
Hughes CEO Jack Shaw said on a conference call Wednesday that the negotiations "are reaching a home stretch. We're hoping that we'll reach some kind of conclusion in the very near future."
Hughes shares jumped more than 4 percent Thursday, both EchoStar and GM (GM: down $0.45 to $42.32, Research, Estimates) dropped marginally, and News Corp. remained unchanged in afternoon trading.
In August, No. 2 U.S. satellite television provider EchoStar made a $30.4 billion stock bid for Hughes (GMH: up $0.73 to $15.08, Research, Estimates), the operator of DirecTV.
Rupert Murdoch's News Corp. also is seeking to buy Hughes and gain control of DirecTV, which has over 10 million subscribers. News Corp. hopes to combine DirecTV with its own Sky Global Networks, the world's largest satellite television company. However, the value of News Corp.'s bid is unknown.
Press reports said GM could pick a winning bidder next week but that complications could delay any outcome.
"We're optimistic we'll be able to reach some type of decision," a GM spokesman said, declining to comment on timing.
"We remain hopeful of a positive outcome of the talks," a News Corp. spokesman said.
For its part, EchoStar has lined up another $5.5 billion in financing. At the time of its bid in August, EchoStar CEO Charlie Ergen had indicated he could sweeten the deal to include cash.
EchoStar's financial advisor, UBS Warburg, is providing half the $5.5 billion. Littleton, Colo.-based EchoStar (DISH: up $0.09 to $25.22, Research, Estimates) is looking to Deutsche Bank for the rest, the New York Times reported.
UBS declined comment. 
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