September 13, 2012 / 10:18 PM / 6 years ago

Manitoba Telecom mulls sale of its Allstream business

TORONTO (Reuters) - Manitoba Telecom Services Inc MBT.TO said on Thursday it is undertaking a wide-ranging strategic review of its Allstream business that could potentially result in the sale of the unit that owns an extensive fiber optic network across Canada.

Recent changes in Canadian law allow for increased foreign investment into certain telecommunications companies, such as Allstream. The company said the changes in the law have prompted it to consider a full range of alternatives that could enhance Allstream’s competitiveness.

“This process is wide-ranging and does not assume that any significant change is necessary or desirable,” said Manitoba Telecom’s Chief Executive Pierre Blouin in a note to clients.

The company said it has no plan to disclose any developments with respect to this strategic review process until its board is in a position to approve a particular course of action.

Winnipeg-based Manitoba Telecom said it has retained CIBC World Markets and Morgan Stanley as its financial advisers.

Reporting by Euan Rocha; Editing by Leslie Gevirtz

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