Canada's Mobilicity bid deadline extended to Dec. 16

Mon Dec 9, 2013 10:28am EST
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TORONTO Dec 9 (Reuters) - The deadline to bid in a court-supervised auction of struggling Canadian wireless startup Mobilicity has been extended by a week to Dec. 16, a regulatory filing showed.

Bidders will now have until 12 p.m. on Dec. 16 to submit bids for the carrier, according to a document posted on the website of court-appointed monitor Ernst & Young Inc.

Mobilicity, which has fewer than 200,000 customers in some of Canada's largest cities, filed for court protection from its creditors earlier this year after running short of cash.

The Toronto-based start-up, which offers lower-cost unlimited talk and text plans, had agreed to sell itself to Telus Corp, one of Canada's dominant providers. But the federal government twice blocked the sale on the grounds it would create an undue concentration of spectrum ownership.

Telus, BCE Inc and Rogers Communications Inc control a combined 90 percent of the market, and hold roughly 85 percent of the spectrum used to send mobile voice and data.