Citigroup Reiterates Neutral Rating, $94 PT on Liberty Media

In a report published Wednesday, Citigroup reiterated its Neutral rating and $94.00 price target on Liberty Media

. Citigroup noted, “Last night, Liberty filed a Form 4 indicating two things: 1) On August 10 thru August 14, 2012, Liberty purchased 90 million shares on the open market at $2.45 to $2.52 per share, 2) On June 29, 2012 Liberty entered into a second forward purchase agreement with an unnamed counterparty. The counterparty acquired 41 million shares at an average purchase price of $2.05 per share. (This forward contract expires on October 11, 2012.) If we assume Liberty converts 100% of its preferred shares, upon settlement of the forward contract in October, we estimate Liberty Media's stake in Sirius would increase to 47.4% of diluted shares. However, if we include the dilution associated with Sirius' $550 million 7% exchangeable debt, Liberty's ownership stake would drop to 45.5%.” Liberty Media closed on Tuesday at $98.95.