Telus may yet bid for Bell - Globe and Mail (an overdue but necessary post)

Will Telus try to buy Bell Canada?

There’s still a chance Burnaby, B.C.-based Telus - albeit a small one - the company will make a play for the country’s largest communications service provider, according to Derek DeCloet of The Globe and Mail.

http://www.theglobeandmail.com/servlet/story/RTGAM.20070706.wdecloet0706/BNStory/Business/

He says there’s “no better than” a one in four chance that Telus submits an offer sheet for Bell before the company’s annual meeting in October.

Jeff Fan of UBS Securities has said the same thing - he also pegs the chances of a Telus bid at 25%.

Also noteworthy is the fact that key Telus executives took vacation once the company said it decided to pull out of the running.

There’s a small chance though Telus may yet be able to get back into the bidding for Bell given the long waiting period before shareholders can approve the deal.

Getting the right kind of approvals from regulators is key, DeCloet argues, is key of course. Telus wants to keep the Bell Mobility division if and when it buys Bell - no surprise given the fact the wireless divisions are the growth engines of Telus, Bell and Rogers. Well, Telus and Rogers anyways. But I digress.

I, for one, happen to agree with DeCloet’s assessment though I put the probability of a Telus bid at 51%. I’ve said Telus is going to get back into the game and I stick by my prediction!

July 12, 2007 | Filed Under News Items and Commentary