Telus back in acquisition talks with Mobilicity: Globe

Thu Oct 10, 2013 2:50pm EDT
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TORONTO (Reuters) - Telus Corp, one of Canada's biggest wireless providers, is in talks with Mobilicity to revive a plan for Telus to purchase the struggling smaller player, the Globe and Mail newspaper reported late Monday.

The newspaper report, which cited unnamed sources, came after Mobilicity won protection from its creditors on Monday and said it was seeking regulatory approval for a transaction that would allow it to keep operating. It did not identify the possible buyer.

Telus declined to comment on Monday on the possibility of reviving its bid, and could not be reached immediately for comment on Tuesday. Mobilicity officials also declined to identify the potential buyer on Monday and could not immediately be reached for comment about the report.

In June, the Telus bid for Mobilicity was effectively blocked by the federal government, which wanted to ensure there were four wireless competitors in each region.

Mobilicity is one of several new wireless providers that bought Canadian spectrum in a 2008 auction. They have helped to lower average bills but struggled to dent the dominance of three major carriers: BCE Inc's Bell, Rogers Communications Inc and Telus.

(Reporting by Allison Martell; Editing by Jeffrey Hodgson and Jeffrey Benkoe)

A Telus retail store is seen in downtown Montreal, June 21, 2007. REUTERS/Shaun Best