The CEO of Canadian operator Wind Mobile has been quoted as saying his company is participating in the auction process to buy indebted rival Mobilicity.
Anthony Lacavera told local newspaper the National Post that Wind was one of the parties attempting…
The CEO of Canadian operator Wind Mobile has been quoted as saying his company is participating in the auction process to buy indebted rival Mobilicity.
Anthony Lacavera told local newspaper the National Post that Wind was one of the parties attempting to get control of Mobilicity and that it represented a good opportunity to create a consolidated fourth player.
Last month, Mobilicity’s court-appointed administrator Ernst & Young set a 2 December deadline for prospective bidders to declare their interest. Formal offers have to be submitted by 9 December.
Mobilicity has until 20 December to restructure or find a buyer after a court decided to extend its creditor protection beyond 30 October. It began this process at the end of September after struggling to satisfy its debt-holders.
The government twice blocked larger operator Telus’ attempts to buy Mobilicity and get its valuable AWS spectrum licences. In June a C$380m offer was denied and a second try in October was also rejected.
Industry Canada opposed the takeover bids because it does not want Telus or the other two incumbent operators – Bell and Rogers – to acquire more spectrum.
The government has been pursuing a policy, which seeks to encourage the creation of a nationwide fourth player in the Canadian mobile market, in the hope that competition will increase and prices for consumers fall.
