The sound of nail biting by Canada’s largest telecom players has just gotten louder as a fresh report has suggest that Verizon Communications is getting closer to acquiring Wind Mobile and making its Canadian entry official.
According to the Financial Post, Verizon is going to be holding a board of directors meeting sometime next week and will formally approve any plans it may have to bid on Wind Mobile or not.
“While Verizon has already made an initial offer for Wind in the range of $700-million, those with knowledge of the matter say it is now preparing to make a formal offer and taking that plan as well as its roadmap for investment in the Canadian wireless market to its board. The board of directors of Wind’s foreign owner VimpelCom Ltd. is also set to meet next week and said to be considering offers to buy the Canadian company,” quoting the Financial Post.
Sources also went on to reveal surprisingly, Verizon was not the only company to be interested in getting ahead of the game and buying out Wind Mobile. Reportedly, Accelero Capital Holdings is also on the list of potential acquirers and Toronto-based Birch Hill Equity Partners may also make a move in the coming days as well.
It will definitely be a tough battle for Verizon, the second largest wireless carrier in the United States, especially since many analysts consider it to be an opportunity that is way too good to not explore. The upcoming auction of a 700-megahertz frequency spectrum is also said to play a major role in the acquisition, giving foreign investment the chance to bid on two of the four blocks on display.
Rogers, TELUS and Bell, Canada’s largest telecommunication providers at the moment are also interested in acquiring WIND Mobile in order to block the path of Verizon Communication from making their entrance up north. Keeping them down in the south will be the top most priority of the cellular service companies in Canada, but only time will be able to tell whether that works out the way they want it to or not.
Verizon is now under pressure from all sides as they are being hurried to conclude a deal for WIND Mobile as quick as possible. The company is under some serious debt and Verizon is looking to capitalize on that by making an offer that they will not be able to refuse.
Source: TechVibes
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