Telus Corp. has extended by one month the deadline for its $1.1-billion hostile takeover offer for Microcell Communications Inc., operator of Canada’s Fido wireless network.
Telus’s offer is now open for acceptance until July 22, “unless further extended or withdrawn.”
The deadline of the extension set by Burnaby, B.C.-based Telus comes as Microcell continues discussions with several investors on potential alternatives to the Telus bid.
Microcell, owner of the Fido telephone brand, said the discussions could result in a sale of the company to Telus or some other party, a strategic investment in the company, a sale of some assets, some combination of those options or none of them.
Microcell officials have already recommended that its shareholders reject the Telus offer. Microcell has until July 17 under a poison-pill protection to find a better deal.
Telus has said that if it were able to take control of Microcell, the combined company would have better exposure to the growing wireless market and boost Telus’s expansion strategy, particularly in Ontario and Quebec.
The deal would also give Telus significant tax-loss benefits and access to new wireless spectrum.
However, some analysts have said the two wireless systems are not technically compatible.
With 1.2 million customers, Microcell is engaged in a nasty head-to-head battle for market share with Telus in Quebec, Toronto and in Vancouver.
Microcell, smallest of the four wireless telephone providers in Canada, went through a period of bankruptcy protection to emerge a year ago owned by its creditors.
The other major cellphone companies are Bell Mobility, owned by Bell Canada; and Rogers Wireless, controlled by Rogers Communications.
