Skyscraper City Forum banner
1 - 20 of 79 Posts

·
Ex-mod
Joined
·
7,931 Posts
Discussion Starter · #1 ·
Telus, Bell talk?
The possible merger of Western-dominant Telus, with a market value of $21.8 billion with Eastern-dominant BCE, which has a market value of $31.3 billion would create a Canadian telephone titan

By Derrick Penner, CanWest News Service
Published: Wednesday, June 20, 2007

Vancouver-based Telus Corp. and its biggest rival, Montreal-based BCE Inc., are talking about a merger to create a Canadian telecommunications megacompany, BCE said late tonight.

In a news release, BCE said Telus "has entered into discussions to explore the possibility of a business combination with the company," joining the fray with private equity firms that put the company into play earlier this year.

The merger of Western-dominant Telus, with a market value of $21.8 billion with Eastern-dominant BCE, which has a market value of $31.3 billion would create a Canadian telephone titan, which would also touch off a complicated, potentially fatal regulatory review.

Telus CEO Darren Entwistle and BCE chief executive Michael Sabia are currently bitter rivals attempting to woo business in each other's backyards. The merged entity would control most domestic telephone service in Canada, and the deal would have to be approved by the Canadian Radio-television and Telecommunications Commission and Industry Canada's Competition Bureau and possibly the federal cabinet.

Telus shares closed today at $65.76 on the TSX, while BCE shares closed at $39.17.

The big U.S.-based private equity firm Kohlberg Kravis Roberts & Co. touched off the bidding war for BCE when news broke at the end of March that it had held discussions with the firm and was seeking potential partners for a friendly purchase that would take Canada's biggest telecommunications company private.

KKR's partners in the bid include the Canada Pension Plan Investment Board, Caisse de depot et placement du Quebec, and Canadian private equity firm Onex Corp.

Also bidding for BCE are a consortium of Ontario Teachers Pension Plan and U.S. firm Providence Equity Partners Inc., and a group led by U.S. buyout firm Cerberus Capital Management LP that has been courting Canadian investors, including Hospitals of Ontario Pension Plan, Hong Kong/Canadian billionaire Richard Li, Manulife Financial Corp. and CanWest Global Communications Corp.

All three groups have signed non-disclosure and standstill agreements with BCE to gain access to its confidential data room of financial information. Their bids are due by the end of next week.

That Telus would be the fourth party to sign a non-disclosure agreement with BCE was not a surprise, said Toronto-based telecommunications consultant Eamon Hoey, of Hoey Associates.

Hoey noted the agreements are non-exclusive, which means BCE doesn't have to accept any one of them.

Bell formed a strategic oversight committee to review its options "and this [potential merger with Telus] is one of the options."

Hoey added the merger was probably an option promoted by the management of both BCE and Telus as part of the negotiations. And with more bidders in the mix, Hoey said it helps push up the price that BCE could achieve for its shareholders.

[email protected] with files from CanWest News Service


© Vancouver Sun 2007




There goes another one of Vancouver's head offices......
 

·
Registered
Joined
·
13,365 Posts
You know what? We should merge CN and CP. And then we should merge Ontario and Quebec. And then we can merge all the banks into one!!!!!!!!!

Lets have one of everything! Monopolies for all!!!!

*lives in a city that receives neither service*
 

·
Banned
Joined
·
4,467 Posts
I can see this happening actually.

Also what does that mean for BCE? Because isn't BCE being bought up possibly?

And when I worked at Bell Mobility, I always wondered and never asked this question. But maybe you can answer me Vid. Do you know why the Thunder Bay region has it's own telephone service?
 

·
Torontonian 4ever
Joined
·
9,891 Posts
Well, if they "merge", then Vancouver will be losing a head office. No way would BCE's head office dare to move from Montreal.
Don't they already have more offices in Toronto? BCE Place looks bigger than any Centre BCE in MTL...
 

·
Torontonian 4ever
Joined
·
9,891 Posts
But, like the Bank of Montreal, and Air Canada, the official "head offices" rarely dare move from Montreal.
I think BMO is actually headquartered in Toronto. Their Montreal offices are nothing more than a 10 or so storey concrete block. While Toronto's is.. Significantly taller? Anyway, all major companies know where the business is - and that's where they take theirs! Telus building their 30 storey offices by the ACC is a sign of things to come.
 

·
Premium Member
Joined
·
79,203 Posts
I think BMO is actually headquartered in Toronto. Their Montreal offices are nothing more than a 10 or so storey concrete block. While Toronto's is.. Significantly taller? Anyway, all major companies know where the business is - and that's where they take theirs! Telus building their 30 storey offices by the ACC is a sign of things to come.
No, the official head office (siege social) is in Montreal, beside the old Bank of Montreal in Place d'Armes. The defacto headquarters are in Toronto, but the legal headquarters are in Montreal.
 

·
www.mtlurb.com
Joined
·
2,159 Posts
The Bank of Montreal is a joke, they have a historic building as their head office but in fact, its only an empty shell.

Even branches are hard to find. They don't use the term "of montreal" anymore but only BMO 90% of the time.

I just wish they stop kidding themselves and move it already, the same to a lesser extent to the RBC (headoffice is in Montreal on paper).
 

·
Premium Member
Joined
·
79,203 Posts
They all have shortened their names so as not to offend anyone. Toronto Dominion is TD, Bank of Montreal is BMO, etc... I am sure they would love to end the charade of two head offices, but they could not do so without creating a veritable s**tstorm. In the case of Air Canada, they are not allowed to move out Montreal. It is in their charter.
 

·
www.mtlurb.com
Joined
·
2,159 Posts
do you think that the govt and people here would be that outraged for the BMO?

air canada is forced to stay here to guarantee a level of bilingual service for this "bilingual" country... which is just a façade since there is no more any guarantee to offer such a service anymore.
 

·
Premium Member
Joined
·
79,203 Posts
do you think that the govt and people here would be that outraged for the BMO?
.
Personally? I'd say absolutely. That is the reason BMO and the Royal keep up the facade of two head offices. People would react negatively, on an emotional level, without stopping to realize the defacto head office left town a generation ago.
 

·
Registered
Joined
·
13,365 Posts
I can see this happening actually.

Also what does that mean for BCE? Because isn't BCE being bought up possibly?

And when I worked at Bell Mobility, I always wondered and never asked this question. But maybe you can answer me Vid. Do you know why the Thunder Bay region has it's own telephone service?
Bell Telephone took a long time developing phones up here, so the city started it first. As soon as Bell found out about it, they tried to set up shop, but the municipal telephone systems fought hard and won to keep them out, and the city run system got a federally regulated monopoly on the market. Their monopoly only covers land lines now, and that monopoly ends in a few years. They have become extremely aggressive on this though, and have started to act hostile towards the municipal systems in Dryden and Kenora (those cities also started their own telephone companies around the same time for the same reason) which has brought turbulence to the regions municipal politics.

Thunder Bay is big on local ownership, mainly because we're always left out and had to fend for ourselves. The good thing is, TBayTel pays back millions to the city each year in profits, which keeps taxes down. Should we lose TBayTel, we will lose one of the biggest single incomes of municipal dollars. (That is why KMTS and Dryden Telephone are so bitchy - TBayTel is cutting into their profits and literally stealing money from their citizens)
 

·
Registered
Joined
·
3,646 Posts
all Canadian telecommunication providers suck big time, ALL of them (Bell, Telus, Rogers, and so on)...I am thinking of switching to VoIP entirely but cellphone still costs a lot, last bill came at 92 dollars OMG...
 

·
Registered
Joined
·
13,365 Posts
My phone bill was only 24.something last month... 56.something when you include the ADSL.... :)

I don't have a cell phone though, I have telephonophobia. :) It would just be an expensive paperweight for me.
 

·
Banned
Joined
·
4,467 Posts
As someone that worked for Bell Mobility, I have learned a lot about price plans and stuff obviously.

If someone is complaining they are paying too much, it's usually because they are on the wrong price plan.
 

·
Registered
Joined
·
3,646 Posts
As someone that worked for Bell Mobility, I have learned a lot about price plans and stuff obviously.

If someone is complaining they are paying too much, it's usually because they are on the wrong price plan.
I dont know how it is at Bell Mobility, but if you are with rogers if you want to change price plan your contract starts all over again, i am half way through my contract and if I get a new plan the 1.5 years I was with them doesn't count...I say forget it...

The retarded thing with rogers is they charge my minute, even if I only talk like 10 seconds that's 1 minute...Fido charges by seconds, what do they do at Bell Mobility?
 

·
www.mtlurb.com
Joined
·
2,159 Posts
If the CRTC permits the merger, it has to let foreign companies to enter the market and change some rules of the industry so that there is fair competition to the advantage of the consumers!
 
1 - 20 of 79 Posts
Top