Wednesday, August 30, 2006
Telesat IPO
The Globe and Mail carried a report today that BCE is putting together a $1B IPO for Telesat as a consequence of a sale falling through. BCE has been quick to say that its intention was always to take a portion of the company public.Accounts from the original February announcement seem to confirm BCE's statements. An outright sale would have been a change in course and would have been complicated.
Any sale of a majority of Telesat would require creative ownership structures, due to Canada's foreign ownership restrictions on such facilities. Many veterans in the Canadian telecom sector are familiar with such arrangements - let us know if you need help putting together your bid.
In any case, BCE selling just 20% of the company by way of an IPO avoids the possibility of running off-side. As the Globe account notes, this is an asset that will benefit from a relaxation of the foreign investment constraints.
Technorati Tags:
BCE, Telesat, foreign ownership
Posted by Mark Goldberg @ 8/30/2006 08:28:00 PM 
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IMHO, the globe story was a bit overblown. one of those late-summer, let's make some news kind of things.
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Posted by 
: 8:49 AM, August 31, 2006
: 8:49 AM, August 31, 2006 << Home
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