Ralph Nader voices opposition to Liberty Media's buyout offer to Sirius XM as stock rises

If you're a conservative investor, and you're looking for something low-risk to buy a few shares of, might we suggest Sirius XM (SIRI)? Shares of the satellite radio company saw a 7 percent jump after a prominent American politician and other shareholders suggested they would be getting ripped-off by a buyout proposition from Liberty Media. Liberty and its head, John Malone, already own 53 percent of Sirius's shares, and it offered a $3.68-a-share buyout rate from the remaining holders. That deal would require a majority vote from the minority holders.

$3.68 was a 3 percent increase from the then-value of the stock, but Nader among others doesn't think that's enough.

"Sirius was trading over $4 a share just a few weeks ago and is a very fast growing company with bright indicators and registers four stars by Standard & Poor's which recommends a buy," Nader said. "I am sure that I along with other shareholders in Sirius XM will be interested in a legal challenge to John Malone's company for lowballing Sirius XM's shareholder value."

A few cents here and there might not seem like a big deal to us non-investors, but for those who potentially own thousands of shares, it adds up. SIRI has ranged from $2.95 to $4.18 in the last year, according to Yahoo Finance, and is expected to end at around $4.55 by the end of 2014. Barron's also advised against the proposed buyout, pointing out that Sirius XM has more paying subscribers than any cable or satellite television companies. That number looks to increase as nearly 70 percent of all new cars in the U.S. comes equipped with the service.

So why buy now? If Liberty wants to continue its bid to buy out Sirius XM, it knows that it's going to have to offer something higher. As those discussions continue, more people are going to be looking to buy in before the higher bid is offered. It looks like an opportunity to get and get out quick, while making a profit in the process.