(Toronto) Shaw Communicaions’ stock would take a heavy blow if the takeover bid presented by Rogers Communications were to fail, but its price would still remain above its price before the deal was struck, a an analyst estimated Wednesday.
In a note to investors, analyst Jérôme Dubreuil, of Desjardins, said if the $ 26 billion deal between the two telecom groups did not go ahead, Shaw’s share price would fall below. its current level of around $ 35.00, while probably remaining above the $ 23.90 posted in March, before the deal was announced.
Mr. Dubreuil believes Shaw’s share price could find support between $ 25.00 and $ 30.00, as the Calgary-based company’s latest quarterly results showed signs of improvement in its trading business. cable TV. In addition, recent decisions by the Canadian Radio-television and Telecommunications Commission (CRTC) regarding wireless networks could benefit Shaw, he said.
Shaw’s share price soared after the deal was announced valued at $ 40.50 per share, but has retreated to around $ 35.00 in recent days as a power struggle s ‘sits on the Rogers Board of Directors.
Edward Rogers, son of the late Rogers Communications founder Ted Rogers, has asked the British Columbia Supreme Court to confirm the validity of his version of the company’s board of directors, which he formed by replacing five of its members.
Edward Rogers’ mother, Loretta Rogers, and sisters Melinda Rogers-Hixon and Martha Rogers claim this version of the board is illegitimate and does not follow the laws of British Columbia, where the company is incorporated.
Shaw CEO Brad Shaw, for his part, has said he remains committed to the deal despite the discord, but if his company were to pull out, a report shows it would have to pay Rogers compensation of $ 800 million break. For its part, if Rogers abandons the deal, it will have to pay Shaw $ 1.2 billion.