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Rogers, BCE offer is a fair one for Glentel shareholders, says Euro Pacific

Glentel's flagship Wireless Wave store first opened in 1997.
Glentel’s flagship Wireless Wave store first opened in 1997.

The deal that will see two of Canada’s telco incumbents own Glentel (Glentel Stock Quote, Chart, News: TSX:GLN) is a good one for Glentel shareholders, says Euro Pacific Canada analyst Rob Goff.

On Christmas Eve Day, Rogers (Rogers Communications Stock Quote, Chart, News: TSX:RCI.A) and Bell (BCE Stock Quote, Chart, News: TSX:BCE) issued a joint press release announcing the pair would jointly own Glentel, pending approval of BCE’s previously announced acquisition.

On November 28th, shares of Glentel doubled on news that the company had agreed to be bought by BCE for approximately $670-million. Under the terms of the deal, which received unanimous approval from Glentel’s board, shareholders would receive either $26.50 in cash or 0.4974 of a common BCE share for each Glentel common share.

As part of the agreement, Rogers will withdraw the recently filed court application for an injunction which would have challenged the acquisition.

Goff notes that on December 1st, he issued his take on the original BCE bid, moving his rating on Glentel to “Tender” and increasing his target price to the takeout price of $26.50. After Rogers looked to block the deal, however, the analyst changed his rating to “Under Review”. With the news of the current agreement between Rogers and Bell, Goff is changing his rating to “Tender” once again. His price target returns to $26.50.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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