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Telus Withdraws $350 Million Mobilicity Takeover Bid

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Mobilicity

Telus has officially withdrawn its $350 million Mobilicity takeover bid, a move that comes several weeks after the federal government warned that it would take retaliatory measures if Telus did not abandon its bid for Mobilicity, The Globe And Mail is reporting. Ottawa has reiterated its position time and again that no spectrum transfers will be approved to the Big 3 which would allow ‘undue concentration’.

A source said the Vancouver-based telecom firm sent word of its decision Mobicility on Tuesday, informing them it was withdrawing its offer because conditions of the deal had not been met. 

Telus is now “no longer in the mix” to obtain Mobilicity, the source said.

The report does not clearly say which conditions had not been met, however it does note that one of them was that Ottawa did not approve the transfer of spectrum between Mobilicity and Telus, a transaction the government has consistently opposed. The government had threatened that if Telus persisted in Mobilicity up in legal battles, Ottawa would redesign an April, 2015, auction of 2,500 Mhz frequencies to effectively bar the Vancouver company from acquiring any of this spectrum.

Telus tried to unsuccessfully buy Mobilicity last May offering $380 million, while a second offer was rejected by Ottawa back in October.

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  • kkritsilas

    My question is: Why did it take so long? Gov’t has been pretty upfront about not allowing this since the first time Telus put in a bid. Why did Telus NOT back off then? The Gov/t has been pretty adamant about not letting any more spectrum get into the hands of the Big 3 for over a year now, so this shouldn’t have been a surprise to Telus.

    Eventual end game will be Mobilicity bought by Videotron or WInd, and then the combining of Wind and Videotron. 4th national carrier becomes a reality.

    Kostas

    P.S. Einstein’s definition of insanity was doing the same thing over and over again, and expecting a different result. Ring a bell (pardon the pun) Telus?

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