Brokerage Doubts SBC-DirecTV Deal - TheStreet

Updated from 8:41 a.m. EST

Lehman Brothers weighed in Monday morning following a report that

SBC Communications

(SBC)

is in talks to acquire

General Motors'

(GM) - Get Report

DirecTV satellite television unit for more than $10 billion.

The brokerage expressed skepticism that the deal will ever get done and advised clients owning GM class H shares, which represent an interest in the subsidiary that owns DirecTV, to sell them if the story causes them to go up. Lehman said it sees few near-term catalysts for the stock in lieu of an acqusition. GM's H shares were rallying in the premarket session, up about 74 cents, or 7.6%, to $10.49 on Instinet.

Several reports suggested SBC shares could face pressure in the wake of the

New York Times

report, and also noted that this could be another headache for longtime DirecTV suitor

News Corp.

(NWS) - Get Report

. SBC shares weren't seeing much volume in the premarket session, although the few matches that crossed on Island suggested SBC could be down about 50 cents from its Friday close of $25.18.

GM had agreed in 2001 to sell its Hughes Electronics division, which includes DirecTV, to

EchoStar Communications

(DISH) - Get Report

, but antitrust authorities in Washington rejected that deal last year, the

Times

said.

For its part, DirecTV made no mention of the new negotiations in a press release announcing a $3 billion bond and bank financing Monday morning.

Spokesmen for SBC and News Corp. declined to comment on Friday's report, the

Times

said.

According to the

Times

, Toni Simonetti, a GM spokeswoman, said, "We have certainly been engaged in evaluating strategic options for Hughes." She added, "We're looking at a number of options, but we are not in a position to comment on anything specific at this time."