While no official deal has yet been inked, Canadian telecoms Telus and BCE have announced that they are pursuing "non-exclusive discussions" about a possible "business combination." Telus' CEO characterized the potential union as one that would create an "all Canadian solution for both immediate and long-term value creation." BCE also mentioned it will review various takeover bid proposals during the third quarter, including offers by Canada Pension Plan Investment Board, Ontario Teachers Pension Plan Board and U.S. PE firm Cerberus Capital Management.
Telus claims to have 10.8 million customer accounts, which includes about 5.1 million wireless subscribers, while BCE announced it had more than 5.8 million wireless subscribers by the end of Q1. Telus and BCE run CDMA networks, but Telus also has an iDEN network.
For more on the possible tie-up:
- read this article [1] from RCR News
- read this release [2]
Links:
[1] http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20070621/FREE/70621006/1002/FREE
[2] http://www.fiercewireless.com/node/10001