Mobilicty in Takeover Bid Talks with Quebecor
Published on: 15th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Quebec telecom operator Quebecor has reportedly expressed an interest in buying the struggling mobile network operator Mobilicty.
Scotiabank analyst Jeff Fan wrote in a research note that Quebecor has signed a non-disclosure agreement with Mobilicity as it gets a look at the company's accounts and ponders a takeover bid.
For Quebecor, which also owns the Vidéotron mobile network, this would be its first significant move outside its French-speaking home market.
Mobilicity has operations in Toronto, Ottawa, Calgary, Edmonton and Vancouver, but is also under bankruptcy protection as it seeks a buyer to pay off its debts. Previous attempts by the larger networks to buy it were blocked by the government.
The talks could indicate that Quebecor is looking to become a national telecoms operator, and such a move is likely to be supported by the government which is keen to see a fourth major player in the market to challenge the current big-three networks.
"The most important potential twist could be that Quebecor-Videotron may pursue licences outside Quebec for opportunistic and financial reasons," Fan said in the research note.