Shares of Hughes Communications surge after Reuters exclusive on potential sale

Shares of Hughes Communications soared 30 percent after Reuters reported on Jan. 20 that the broadband satellite services company has been put up for sale by its private equity owner Apollo Management. Reuters exclusively reported that Hughes has hired Barclays Capital to advise on a sale and that the company has drawn interest from several private equity firms and satellite companies. The stock rose as much as 30 percent following the Reuters report, before ending the day up 11 percent. It gained another 19 percent in the following trading session, valuing the firm at more than $1.3 billion. Wachovia and Raymond James research analysts raised their target prices on Hughes, citing the Reuters story. Bloomberg, the Associated Press and USA Today were among the media outlets that picked up the Reuters story.