Telus will not be purchasing Fido

Anonymous

Electoral Member
Mar 24, 2002
783
0
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Microcell tells shareholders to reject Telus bid

Microcell tells shareholders to reject Telus bid



MONTREAL (CP) - Microcell Telecommunications Inc., owner of the Fido cellular phone network, has hung up on a $1.1 billion hostile takeover bid by western telecom giant Telus Corp. made last week.
Microcell said today it is recommending shareholders reject the "inadequate" Telus bid and said it has received inquiries from other potential bidders.

But it remains open to a better bid from Telus or other potential buyers.

After Telus launched its offer May 14, Microcell said it began a full strategic review and will use the time it has under a shareholders rights plan to "pursue all its alternatives."

This could include the sale to Telus or to another company, an investment in Microcell, the sale of some assets or a combination of these options, or none of them.

Microcell, the smallest of the four wireless telephone providers in Canada, went through a period of bankruptcy protection to emerge a year ago owned by its creditors.

With 1.2 million customers, Microcell is engaged in a nasty head-to-head battle for market share with Telus in Quebec and in Vancouver, where Microcell recently launched a low-budget offering to compete with wireline telephones.

On Thursday the flat-rate wireless plan also became available in the Greater Toronto Area.

Telus (TSX: T) offered $29 a share, but the shares climbed higher than that, leading analysts to expect a richer bid from Telus or a rival offer from a competitor.

Besides Telus Mobility, the other major domestic cellphone companies are Bell Mobility, owned by Bell Canada, and Rogers Wireless, controlled by Rogers Communications, Canada's largest cable TV and wireless operator.

Microcell shares (TSX: MT.B) gained 94 cents to close at $32.20 on the Toronto Stock Exchange on Thursday. The Montreal company released its response to the Telus bid after stock markets closed.

Microcell said its financial advisers, J.P. Morgan Securities Inc. and Rothschild, concluded the Telus offer was inadequate.

Microcell also evoked the possibility of another, higher bid.

"The company has been contacted by other parties that have indicated their interest in pursuing discussions that could result in competing bids or other transactions," Microcell said.

"The company intends to hold discussions with any other interested parties that may emerge."
 

Anonymous

Electoral Member
Mar 24, 2002
783
0
16
Oh! And If Telus buys Fido you can say bye bye also to more competetive market here! Say FORGET IT to a Telus takeover
 

fuzzy

New Member
May 25, 2004
33
0
6
Smithers, BC
I dont think Telus should buy Fido. Telus would be stuck with all the problems fido has right now and it would effect current telus customers. Telus would be bigger, but still. No! It's not gonna happen!