Rogers Communication (TSX:RCI.B) is attempting to block BCE Inc.’s (TSX:BCE) acquisition of Burnaby-based Glentel.
The deal was announced on November 28 and is worth $670 million, including debt. Glentel is a phone retailer with over 1,400 outlets in Canada, the U.S., Australia and the Philippines. Many of those stores and kiosks are branded Wireless Wave or Tbooth Wireless.
Rogers filed an application for an injunction to block the deal in Ontario Superior Court December 17. Rogers is claiming that Glentel was required to get approval from Rogers before any change in ownership.
In a press release, Glentel has responded that it has had a distribution agreement with Rogers for 25 years, but that agreement does not give Rogers the right to block the acquisition.
Glentel currently distributes both BCE (Bell) and Rogers phone plans.
“The BCE acquisition does not affect GLENTEL's agreement with Rogers which will continue to remain in force after the acquisition completes,” said Tom Skidmore, president and CEO of Glentel, in the release.
“Rogers has the right to remove their products from our Canadian stores if they choose or to terminate its agreement with us.”
With files from Glen Korstrom
@jenstden
