Quebec telecom operator Quebecor has reportedly expressed an interest in
buying the struggling mobile network operator, Mobilicty.
Scotiabank analyst Jeff Fan wrote in a research note that Quebecor has signed
a non-disclosure agreement with Mobilicity as it gets a look at the company's
accounts and ponders a takeover bid.
For Quebecor, which also owns the Vidéotron mobile network, this would be
its first significant move outside its French-speaking home market.
Mobilicity has operations in Toronto, Ottawa, Calgary, Edmonton and Vancouver,
but is also under bankruptcy protection as it seeks a buyer to pay off its
debts. Previous attempts by the larger networks to buy it were blocked by the
government.
The talks could indicate that Quebecor is looking to become a national
telecoms operator, and such a move is likely to be supported by the government
which is keen to see a fourth major player in the market to challenge the
current big-three networks.
"The most important potential twist could be that Quebecor-Videotron may
pursue licences outside Quebec for opportunistic and financial reasons,"
Fan said in the research note.
