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EchoStar, PrimeStar to deal?
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February 26, 1999: 7:40 p.m. ET
DBS services provider says it would top Hughes bid for PrimeStar's DBS assets
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NEW YORK (CNNfn) - Direct broadcast satellite service provider EchoStar Communications Corp. late Friday confirmed press reports it had sent a letter to the board of PrimeStar expressing its desire and willingness to make an offer to buy that company's high-powered DBS assets.
Littleton, Colo.-based EchoStar (DISH) said it would offer $600 million, including assumed liabilities, for the PrimeStar DBS satellites Tempo I and Tempo II and their orbital space rights.
The offer, if made, would rival that of Hughes Electronics Corporation (GMH), which agreed to buy the very same PrimeStar assets in January for $465 million in cash and $35 million in liabilities.
Hughes, a subsidiary of General Motors (GM), also agreed to pay $1.32 billion in cash and stock for PrimeStar's 160-channel, medium-power DBS business, which is not included in Echo's offer.
Subject to regulatory approvals, EchoStar said it would use the PrimeStar assets to provide local programming, high-definition television and data services to additional U.S. markets.
The Englewood, Colo.-based PrimeStar is jointly owned by Tele-Communications Inc. (TCOMA), Media One Group (UMG), Cox Communications Inc. (COX), Comcast Corp. (CMCSK) and Time Warner Inc. (TWX) -- the parent of CNNfn. General Electric Co. (GE) owns a small minority stake. 
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EchoStar
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