Telus snubs Bell
Less than a week after Canadian operator Telus suggested it had its eye on compatriot communications company Bell Canada Enterprises (BCE), it has said it will not submit an offer.
Reports on Tuesday quote a spokesperson for Telus saying the “inadequacies of BCE’s bid process did not make it possible for Telus to submit an offer.”
BCE had previously announced its intention to review all strategic alternatives with a view to further enhance shareholder value. The review is expected to be completed by the third quarter.
Tuesday’s news was greeted favourably by the market as shares in BCE slipped C$1.18, or 2.9 per cent, to C$39.54 in early trading on the Toronto Stock Exchange, while Telus rose C$1.36, or 2.2 per cent, to C$63.36.
The Ontario Teachers’ Pension Plan, which has teamed up with US private equity firm Providence Equity Partners to look at taking BCE private, said on Monday it would submit a bid for BCE, which has a market value of around C$33bn ($31bn).
