Allstream to be sold to Manitoba Telecom

Canadian operator Manitoba Telecom Services has entered into an agreement to buy Toronto-based local and long-distance corporate services provider Allstream for CAD1.7 billion (USD1.27 billion). BCE subsidiary Manitoba hopes the purchase will increase its presence in Canada; its business is currently confined almost exclusively to the province of Winnipeg in the west of the country. Allstream was created by AT&T in 1999 as AT&T Canada, but was forced to enter into Chapter 11 bankruptcy protection in 2002. It emerged in April 2003 as Allstream and now claims around 100,000 business customers.