Telus Won't Counterbid on BCE -- Globe and Mail

Telus will walk away from rival Canadian telecom BCE, choosing not to counterbid against the Ontario Teachers Pension Plan, largely because of its inability to get regulatory guidance on which assets it would have to sell in order to get federal regulatory approval, The Globe and Mail reported Friday. The Ontario Teachers Pension Plan has agreed to buy BCE for $35 billion ($42.75/share), but it had been widely expected that Telus would come back with a sweetened offer. Telus has seeking guidance from Ottawa and the Canadian Competition Bureau in considering a counter-bid before BCE holds its shareholder vote in mid-September. However, sources say, the company has decided not to proceed after being told guidance would not be forthcoming. It was unwilling to bid without first knowing which remedies the government might insist upon, "since a wireless divestiture would have a major impact on value of the acquisition."

Sources: Globe and Mail
Commentary: Telus Won't Rule Out A Bid For Bell Canada, Reports Q2 Results Friday • In the Hunt for BCE, Time is on Telus' Side • Telus to "Trump" Ontario Teachers' Bid for BCE?
Stocks/ETFs to watch: BCE, TU

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