(Toronto) Globalive Capital said Friday it made a $3.75 billion bid directly to Shaw Communications to acquire wireless service provider Freedom Mobile, due to a lack of commitment from Rogers Communications.
Posted at 10:41 a.m.
Updated at 5:18 p.m.
Globalive Founder Anthony Lacavera explained that Rogers “neutralized” his company during the sale process and believes Rogers is ultimately looking to sell Freedom to a company that may not be so competitive in Canada’s telecommunications industry. .
Rogers declined to comment on Mr. Lacavera’s claims, and Shaw did not immediately respond to a request for comment.
Selling Freedom is expected to be a condition of approval for Rogers’ $26 billion buyout of Shaw, though the Competition Bureau said in a filing released last month that selling Freedom isn’t enough. to allay his concerns about the transaction.
Mr. Lacavera explained that his company’s decision was made shortly before Rogers and Shaw extended the deadline for closing their deal, which is now set for July 31. He added that he didn’t necessarily expect a response from Shaw until late July.
Rogers and Shaw said they agreed not to go through with the deal until a negotiated settlement is reached with the Competition Bureau; it is therefore possible that the deadline of July 31 will be extended further.
Agreement with Telus
Globalive has been stepping up its efforts to buy Freedom since late last year, even securing a network and spectrum sharing deal with Telus in May to bolster its bid for the wireless carrier.
Mr. Lacavera argues that Globalive meets the federal government’s requirement for an independent, well-capitalized entity to take over Freedom.
Freedom Mobile, formerly known as Wind Mobile, was founded by Mr. Lacavera in 2008. After financial difficulties and foreign ownership issues, Wind Mobile was sold to Shaw in 2016 and changed its name.
“At the end of the day, if the government guarantees a fair, open and transparent process for Freedom’s activities, we will have the best offer on merit, and Canadians will have more competition,” he argued.