TELUS in Talks to Acquire BCE of Canada

Strategic technology innovator and IPTV pioneer TELUS confirmed Thursday it’s in talks to buy Bell Canada Enterprises (BCE), which includes Canadian national provider Bell Canada and a vast array of assets.

If the talks result in such an acquisition, the move would create the country’s largest communications company, bringing together two veteran video service providers with other IP assets as well. Financial terms of the talks were not disclosed.

BCE's services include local, long-distance and wireless phone, high-speed and wireless Internet access, IP-broadband, information and communications technology and direct-to-home satellite and VDSL television. Other BCE holdings include Telesat Canada, a pioneer in satellite operations and systems management, and an interest in CTVglobemedia, a Canadian media company.

With $8.8 billion of annual revenue and 10.8 million customer connections, including 5.1 million wireless subscribers, 4.5 million wire-line network access lines and 1.1 million Internet subscribers. TELUS provides a wide range of communications products and services including data, IP, voice, entertainment and video.

"TELUS believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and TELUS stakeholders. It would be an all-Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry," said TELUS President and CEO Darren Entwistle, in a statement released this morning. "TELUS has a unique opportunity to create a truly national Canadian enterprise with the requisite balance sheet strength as well as scale and scope to continue TELUS’ development as a global leader in the deployment of state of the art technology and innovative new services for customers."

The talks arose as a result of a strategic review initiated by BCE in mid-April to explore business partnership opportunities.

TELUS said a partnership would establish “a truly national telecommunications company, similar to other G8, European and commonwealth countries (such as British Telecom, France Telecom, Deutsche Telekom, NTT, Telecom Italia) in an industry critical to national sovereignty.”

TELUS cautioned, however, that there is no assurance that TELUS and BCE will continue discussions or enter into any agreement to proceed with any transaction.

Bell Canada Enterprises www.bce.ca
TELUS Inc. www.telus.com

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