* Sirius shares failed to stay over $1 by Monday deadline
* Analysts expect company to ask for extension from Nasdaq
* CEO has previously said he is confident of no delisting
NEW YORK, March 15 (Reuters) - Sirius XM Radio Inc (SIRI.O) is likely to seek more time from Nasdaq to address its penny stock price, after failing to meet a Monday deadline to prop up its shares above $1 and retain its listing.
Shares of Sirius, whose market cap is about $3.5 billion, have risen by more than 50 percent this year, but the satellite radio company has not met a Nasdaq market requirement that its stock close above $1 a share for 10 days in a row by March 15.
Sirius, whose stock was unchanged at 91 cents shortly before the market closed on Monday, said last month that if it received a de-listing notice, it would appeal and seek a six-month extension as permitted under Nasdaq rules.
Barrington Research analyst James Goss on Monday noted that Sirius is far bigger than its stock price suggests. He pointed to Sirius’ announcement last week that it raised $800 million through a senior notes offering to refinance a portion of its long-term debt. [ID:n12104907]
“There is some appetite for the securities of this company,” he said. “Therefore, it’s seemingly ridiculous to think that they would be de-listed because of the price per share, when the enterprise value is effectively in the $10 billion ballpark.”
Sirius has about 3.8 billion shares outstanding and, on average, more than 135 million traded each day of the past month on Nasdaq. It bolstered its books following an investment last year from John Malone’s Liberty Media Corp LINTA.O LCAPA.O LSTZA.O that gave Malone a 40 percent equity stake in the company. Analysts have said Sirius’ market cap would top $6 billion if Malone’s stake were included.
Sirius Chief Executive Mel Karmazin has previously said he was confident no delisting would occur, and that the stock would rise, either on its own, or through the potential use of a reverse split. [ID:n30455685]
On a conference call last month, Karmazin said, “There is absolutely no concern about Sirius XM continuing to be listed and traded on Nasdaq and if successful in meeting Nasdaq’s dollar bid requirement, we have no plans to execute a reverse split,” he said.
A company representative was not immediately available for comment on Monday. (Reporting by Franklin Paul; Editing by Richard Chang)