Hughes Boosts Stake in PanAmSat

Hughes Electronics Corp. said it will pay about $846 million to boost its stake in PanAmSat Corp., gaining tax benefits by acquiring ownership of 81% of the satellite company. Hughes said it’s buying 14.1 million shares of PanAmSat for $60 each from Mexico City-based Grupo Televisa and a group of PanAmSat’s founders. The El Segundo-based company, a unit of General Motors Corp., acquired a 71.5% stake in PanAmSat last year for $3 billion, combining its U.S. satellites with PanAmSat’s over Latin America, Europe and Asia. Greenwich, Conn.-based PanAmSat is taxed on its earnings and Hughes taxed on its own earnings, which include PanAmSat’s. Regulations allow Hughes to be taxed only one time once it reaches the 80% ownership level. Hughes said it has no immediate plans to increase its PanAmSat stake further.