TELUS Elects Not To Submit Offer To Acquire BCE

Citing the "inadequacies" of BCE's bid process, Vancouver's Telus has decided not to submit an offer to acquire Canada's largest phone company.

As reported, Telus announced late last week it had entered non-exclusive talks with BCE about a possible business combination. Before it made that announcement, many in the market had expected Telus to stay on the sidelines in the bidding process, believing Canada's Competition Bureau would never allow Telus to retain BCE's mobile-phone business.

Telus was the fourth party to announce it was considering a bid for Montreal's BCE. The others include a group led by CPP Investment Board and U.S. buyout firm Kohlberg Kravis Roberts, another led by Ontario Teachers' Pension Plan and U.S. partner Providence Equity Partners, and a third group headed by Cerberus Capital Management, another big U.S. private-equity firm.

However, a report in Tuesday's Globe and Mail newspaper said Caisse de Depot et placement de Quebec and Onex Corp. had pulled out of the auction process. The two were part of the CPP Investment/Kohlberg bidding group.

Spokespeople from Caisse, CPP and Ontario Teachers weren't immediately available for comment.

-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 26th June 2007