Mobilicity Said to Receive Takeover Bid from Rival
Published on: 19th Dec 2013
By: Ian Mansfield
Struggling Canadian mobile network Mobilicity is reported to have received a takeover bid from a rival small network that could see the two merge to form a stronger competitor to the big three networks.
However, the bid from Wind Mobile is said to be about half the offer made by Telus, that was later blocked by the government.
Wind's offer for somewhere in the region of C$165 million was submitted just before court-monitored bidding was due to close.
Telsus' offer would have paid off all of Mobilicity's debt, so the offer from Wind Mobile could leave debt holders out of pocket, unless the offer included Wind taking on the debt itself.
The merger of the two smaller networks could lead to some necessary consolidation in the market, and enable the government to maintain its aim of at least four networks in each part of the country.
None of the companies commented on the record as the court process is still private.
On the web: Bloomberg