EchoStar execs sell stock

Transactions may mean they don't believe AT&T talk

By Jeff Smith, Rocky Mountain News (Contact)

Wednesday, November 21, 2007

Three EchoStar executives collectively have sold more than $6.5 million of stock in the past week, perhaps indicating they don't believe a rumored takeover by AT&T is imminent.

A buyout, if it occurred, most likely would be at a handsome premium to EchoStar's $43 share price on Tuesday.

Michael Kelly, an EchoStar executive vice president, sold $3.2 million of stock, or 80,000 shares, at prices between $39.50 and $39.83 on Thursday, according to a regulatory filing this week.

Michael Dugan, the satellite TV company's chief technology adviser, sold around $2.7 million of stock on Friday.

In Dugan's case, he exercised 68,867 options, nearly all his holdings, at prices ranging from $39.35 to $39.61. But his stock sale netted little more than $400,000 when subtracting the cost of exercising the $33.11 options. Dugan's options weren't set to expire until June 30, 2010.

Dodge Stanton, the company's general counsel, sold $804,343 of stock on Friday and Monday, netting $616,255. He exercised $10.20 options at prices ranging from $40 to $44.41. His options were to expire March 31, 2009.

EchoStar spokeswoman Kathie Gonzalez said the company had no comment on the transactions.

Jimmy Schaeffler, a senior research analyst for the Carmel Group in California, has been extremely skeptical of reports that AT&T is looking to buy EchoStar.

But Schaeffler didn't read too much into the stock sales. While they could mean the executives don't believe a deal will happen, it also could be part of a regularly scheduled stock sale or a coincidence, he said.

The stock sales occurred prior to EchoStar shares soaring 19 percent Monday to $47.49 amid the latest round of AT&T acquisition rumors.