Canadian incumbent Telus will not face a full investigation into its foreign ownership levels after the regulator dismissed a claim from rival operator Globalive.
The Canadian Radio-television and Telecommunications Commission (CRTC) said it did not…
Canadian incumbent Telus will not face a full investigation into its foreign ownership levels after the regulator dismissed a claim from rival operator Globalive.
The Canadian Radio-television and Telecommunications Commission (CRTC) said it did not consider there to be “sufficient evidence” to justify a review of Telus’ ownership levels.
In June alternative operator Globalive claimed that Telus may be violating Canada’s foreign investment law, which dictates that only 33.33% of the voting shares in the big three telcos can be held by non-Canadians.
In its filing with the regulator, Globalive – which operates as Wind Mobile – cited reports prepared by financial solutions firm Broadridge that suggested approximately 48% of the holders of Telus voting stock resided outside Canada.
However the CRTC was not convinced by the documentation.
“These reports often reflect information provided by intermediaries, rather than the residential addresses of beneficial shareholders,” it said in its judgement.
The regulator went on to say it was “satisfied” with the safeguards Telus had in place.
Last week Telus issued a statement saying its foreign ownership levels had fallen from close to 33% down to 15%.
The operator attributed the fall to the exit of New York-based hedge fund Mason Capital, with which it spent much of the year locked in a bitter feud with regarding its ownership structure.
