Nov 12 (Reuters) - Satellite TV provider DirecTV said on

Tuesday it will abandon its planned acquisition of EchoStar's ( SATS )

satellite television business that includes Dish TV by

Nov. 22 if bondholders don't agree to a debt exchange.

A group of Dish bondholders on Monday rejected the proposed

debt-exchange offer from DirecTV that was contingent upon them

accepting a "haircut" of $1.5 billion.

"A successful exchange was a condition for acquiring the

Dish video business," a DirecTV spokesperson told Reuters in an

emailed statement.

"Given the outcome of the EchoStar ( SATS ) exchange, DirecTV will

have no choice but to terminate the acquisition of Dish by

midnight on Nov. 22."

EchoStar ( SATS ) and Dish did not immediately respond to Reuters

requests for comment.

The proposed deal, initially announced in September, was

seen as a strategic consolidation in a shrinking pay-TV market

as both DirecTV and Dish face intensifying competition from

streaming services.

As part of the two-step transaction, DirecTV was to pay $1

to buy the pay TV business called Dish DBS that includes Dish

and Sling TV, while agreeing to assume about $9.75 billion of

Dish's debt. Dish and DirecTV launched an exchange offer at a

discounted rate for the debt to help extend the maturities.

The deal will provide a crucial lifeline to EchoStar ( SATS ), which

was co-founded by telecommunications entrepreneur Charlie Ergen

and is currently saddled with more than $20 billion in debt.

(Reporting by Surbhi Misra in Bengaluru; Editing by Subhranshu

Sahu)