The sale of Wind Mobile to a group of private equity investors will need to be followed by hefty investment and further deals before Canada`s No. 4 wireless provider poses a significant threat to its much larger competitors. Shares of BCE Inc, Telus Corp, and Rogers Communications Inc all fell slightly on Tuesday following the news, which some view as a first step to creation of a stronger challenger to the three dominant national players."It definitely makes consolidation more likely ... but it doesn't worry me as an investor in Bell, Telus or Rogers," said Ryan Bushell, a portfolio manager at Leon Frazer, which holds shares in the big telcos. "I don't think they can compete at the high-end of the market, which is where the margin is."The deal announced on Tuesday replaces Amsterdam-based Vimpelcom - a majority equity owner who was unable to turn that into a controlling stake - with five private equity backers who sources say paid some C$300 million combined.While the Canadian government will likely tout the deal as validation of its promise of four viable wireless players across the country, there was little indication the new backers have such lofty ambitions.
BCE Inc. is a communications company, providing residential, business and wholesale customers with a range of solutions to all their communications needs. Shares of BCE traded higher by 0.41% or $0.18/share to $43.86. In the past year, the shares have traded as low as $40.60 and as high as $46.70. On average, 698434 shares of BCE exchange hands on a given day and today's volume is recorded at 614190.
BCE Inc. is a communications company, providing residential, business and wholesale customers with a range of solutions to all their communications needs. Shares of BCE fell by 0.31% or $-0.15/share to $48.10. In the past year, the shares have traded as low as $43.18 and as high as $51.09. On average, 1134440 shares of BCE.TO exchange hands on a given day and today's volume is recorded at 1466150.
Rogers Communications Inc. (RCI) is a diversified public communications and media company. Shares of RCI fell by 0.52% or $-0.21/share to $40.27. In the past year, the shares have traded as low as $37.00 and as high as $46.10. On average, 282255 shares of RCI exchange hands on a given day and today's volume is recorded at 184701.
Source
