Rogers Looks to Block $670 Million Glentel Acquisition by Bell
Rogers Communications has filled an application to block Bell from acquiring wireless phone retailer Glentel. Bell is looking to purchase Glentel in a deal that is valued at $670 million in stocks and cash.
Glentel received a notice of Rogers’ proposed injunction on Wednesday from the Ontario Superior Court of Justice. Glentel President and CEO Tom Skidmore said:
“For over 25 years, GLENTEL has distributed Rogers mobile products through our Canadian retail stores and we hope to continue to do so. The BCE acquisition does not affect GLENTEL’s agreement with Rogers which will continue to remain in force after the acquisition completes. Rogers has the right to remove their products from our Canadian stores if they choose or to terminate its agreement with us, but has no right under its agreement to block the acquisition of GLENTEL, which operates in Canada, the United States, Australia and the Philippines. Rogers’ claim is without merit and we will certainly defend against it. Approval of the acquisition is up to GLENTEL’s shareholders, not one of our many suppliers, and we look forward to closing the acquisition in early 2015.”
Rogers claims that Glentel requires approval before the Bell acquisition can be made final. Rogers has the right to remove its products from Glentel retail stores in Canada, but according to the wireless phone retailer Rogers has no right under their current agreement to block Bell’s acquisition of Glentel.
The deal was announced last month has already received approval from Glentel’s board of directors, however they are still waiting on approval from their shareholders. A meeting has been scheduled from January 12 to finalize the missing approvals. Glentel currently operates 500 retail locations across Canada and hundreds of locations in the U.S., Australia, and the Philippines.