Washington - Kevin Martin, the chairman of the FCC, told Reuters that a rule that would currently prohibit XM Satellite Radio from potentially merging with rival Sirius could be changed, Reuters reported.

Earlier this week, comments by Martin that FCC rules would block such a merger, resulted in a sharp drop in both companies' share price. Martin told the wire service on Thursday that the rule, which doesn't allow a single company to hold two satellite licenses, could be altered, if requested.

Martin, however, said that he is not aware of any such request. "The commission looks at anything that is presented to it [and] all of the commission's rules are open to be changed," Martin told Reuters.

Rumors of a possible merger were fueled last month by Sirius CEO Mel Karmazin, who told analysts he sees "significant benefits" from a combination of the two companies, which together have more than 14 million satellite radio subscribers.

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http://tinyurl.com/yuwfyy (Reuters)