Thursday, June 21, 2007

Telus considering bid for Bell Canada


Yahoo!: Telus says possible merger with BCE would be 'all-Canadian solution'
VANCOUVER (CP) - Telus Corp. (TSX:T) says a possible merger with Bell Canada parent BCE Inc. (TSX:BCE) would be "an all-Canadian solution" as pension funds and foreign investors circle its rival, which is Canada's largest telephone company.
Vancouver-based Telus, the country's second-biggest phone company, confirmed Thursday it has entered into a mutual non-disclosure and standstill agreement and is pursuing non-exclusive discussions with BCE about a possible merger.
"Telus believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and Telus stakeholders," CEO Darren Entwistle said in a release.
"It would be an all-Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry."
Telus joins a long list of companies eyeing BCE, which confirmed earlier this year it was reviewing options to increase shareholder value, including a sale or merger.


I will revisit this later after I've thought this through, but my initial instinct is to roll my eyes.

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2 comments:

Anonymous said...

The drive to monopoly seems to be a fundamental business urge. All that effort to break up the big phone companies on both sides of the border, and what happens? Business does not seem too fond of competition.

Unknown said...

OLIGOPOLY - we have the supply so we can demand whatever the heck we want for it - every psychopathic corporation's ultimate dream.

I'm in the process of leaving Telus because in Flatland the government wireless provider wears size thirteen engineer boots so it can better stand on the neck of any competitor foolish enough to believe the free market system works (or even exists) here. I'm very disappointed, because after some initial faux pas in our relationship, the customer service I've received from Telus has been uniformly excellent. But Sasktel won't play nice with Telus so, despite having a brand new cellular tower erected 4 blocks from my house last summer, I can't call my own home from the town I live in using my cell phone unless I want to place a long-distance call. I live in the flattest place in Canada and my service drops in and out like visiting in-laws during summertime while I drive the 22KM into the provincial capital.

Come visit our cozy little socialist gulag sometime - it'll snap your capitalist eyes open faster than a 200 foot bungee cord wedgie.

Shalom
*It means "Peace" but so much more too - perfect balance and harmony in life including trouble-free network coverage - according to my Friendly Neighborhood Hebrew Scholar. I'm hoping to get mine with "Call Display".*