03/28/2008 02:45 am ET Updated May 25, 2011

Once-Improbable Sirius-XM Merger Now Seems...Likely?

The proposed merger between XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. looked dead on arrival back in February, with federal regulators appearing unlikely to give their approval of the $5 billion merger. Nine months later, Wall Street is picking up a different signal: that the deal might somehow pass muster.

In the past few months, investors have shown increasing confidence of the deal's winning approval from the Federal Communications Commission and the Justice Department. XM and Sirius shares -- once trading 30% off their levels from when the merger was announced and enthusiasm briefly reigned -- have

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