Chairman Exits Hughes.

The ongoing battle for control of Hughes Electronics Corp.'s DirecTV service took an unexpected turn when the board of the El Segundo-based satellite company abruptly removed Chairman Michael T. Smith.

The move was seen as a bid by the board to eliminate an obstacle to a purchase of Hughes Electronics by Rupert Murdoch's News Corp. Smith had apparently allied himself with a group of shareholders who felt News Corp.'s bid was too low.

Meanwhile, News Corp. and satellite TV competitor EchoStar Communications Corp. both are pressing ahead with negotiations to purchase DirecTV from Hughes.

Analysts said that Smith's departure capped growing friction between Hughes and its controlling shareholder, General Motors Corp. Although GM ordered Hughes management earlier this month to concentrate on completing the News Corp. deal, Smith apparently continued to rally support behind the scenes for a rival bid by EchoStar, the only satellite television competitor to Hughes' DirecTV service.

Harry J. Pearce, vice chairman of GM, who was expected to retire later this year, was named the new chairman of Hughes. Jack A. Shaw, a senior executive vice president of Hughes in charge of all non-DirecTV assets, assumes Smith's other title, chief executive.

Half the size of DirecTV, EchoStar lacks the cash to acquire GM's 32 percent control ling stake in Hughes, which is valued at nearly $13 billion. But the company has amassed $1 billion in debt in an effort to build a war chest and is seeking partners for an anticipated bid. DirecTV accounts for about 80 percent of the value of Hughes.