Canadian Operators' Bids Rejected for Hopes of More Money
By Eric Lin, Fri May 21 21:30:00 GMT 2004
Microcell rejected a buyout offer from Telus, taking the advice of analysts who called it too low. AT&T said the same thing to Rogers.
Microcell has rebuffed a CND 1.1 billion buyout offer from Telus. After Telus extended the offer last, analysts immediately called it it too low. Microcell agreed saying the offer was inadequate, but is still open to better offers from Telus or another carrier.
Wireless Week suggests Telus is trying to strengthen their presence in the well populated provinces of Ontario and Quebec, where Fido has done quite well. They may also havebeen hoping for access to Fido's GSM roaming agreements, as today Telus announced it would be offering dual mode CDMA/GSM or iDen/GSM handsets from Motorola on their networks. (Telus operates both types of networks.) As with similar situations on US networks, users will be able to use their home CDMA or iDen network in North America but then can roam on GSM 900/1800 networks overseas.
AT&T Wireless also rebuffed an offer from Rogers Communications, who sought to buy out AT&T's stake in their network. Last month, AT&T Wireless informed Rogers they was looking to divest their shares as part of the Cingular buyout. Rogers offered $22.61 per share for AT&T's 48.6 million share stake, but AT&T is holding out for more. They have the option of selling the stake to an other party, but Rogers must be given the chance to meet or beat the bid according to the original agreement.