Telus stops short of bid for Bell

Telus isn’t done with Bell Canada.

Nope – not by a long shot. I believe Telus may still bid for Bell even though Canada’s second-largest communications service provider said in a tersely-worded statement earlier today it has elected not to proceed with a bid because of “inadequacies” with the bidding process.

Darren Entwistle and co. just need a little nudge. Bell directors need to ensure there are four bids, not two that will bid for the company. In other words, they need to come to their senses.

The mere fact we’re talking about a possible Telus withdrawal from the process means Bell’s directors have botched the process.

Question is how and why?

If the complaint is that Bell’s bid deadline was inflexible, Telus has a valid point. Yes, the parties have been talking for the past two months. But it was only last week Telus confirmed its intention to move forward with a bid.

With Telus seemingly the bidder that may have been able to go highest, why not extend the deadline? It’s not like management of Bell Canada haven’t been involved in the bidding process to date. Au contraire – Mr. Sabia and co. have in fact done their collective best to control the bidding process. Why is another question to be tackled in another post.

There are a myriad of other factors, such as mistrust, that may have played into today’s announcement.

Right now, the backs of Bell directors are faced to the wall – Bell needs to get a deal done and there are potentially two fewer bidders as of today because the auction process has been mismanaged.

That’s a bad thing if you’re a Bell shareholder.

Time for Dick Currie and co. to swallow their collective pride – pick up the phone and beg the indulgence of Darren Entwistle. He’ll oblige and everyone will be the richer for it.