The ongoing negotiations between Sirius XM Radio and Liberty Media are hinting at a deal wherein the latter will purchase slightly below half a stake of the former - thereby helping Sirius avert an otherwise-probable bankruptcy, in case it fails to refinance its debt. Reuters' last week reports had said that Liberty is only planning an investment in Sirius, rather than its acquisition.

With today's deadline for repaying a $175 million in convertible bonds held by the satellite- equipment company EchoStar Corp, Sirius' talks with Liberty are apparently an eleventh-hour attempt by CEO Mel Karmazin.

Though the actual figures of Liberty's investment in the pay-radio company have not been officially disclosed, a source familiar with the talks said that the hundreds of millions of dollars will "be enough to cover a significant chunk of debt owed by Sirius this year."

However, going by the New York Times' yesterday reports, in case the deal being negotiated comes through, Sirius could expect $265 million from John Malone's Liberty, in lieu of board seats and a stake in the company. Later this year, Malone may pay Sirius another $200 million.

Refusing to divulge any further details of the prospective deal between the two companies, a Sirius spokesman said: "The management of Sirius XM is continually working to ensure the best possible outcome for the enterprise."