BCE asks court to intervene over Manitoba Telecom purchase

21 May 2004

Canada’s biggest telco, BCE, wants a court to prohibit its subsidiary Manitoba Telecom Services from breaching a strategic alliance agreement between the pair with its purchase of Allstream. Manitoba is currently in the process of buying Allstream for CAD1.57 billion, which, once completed, will create the nation’s third-biggest phone company, increasing competition for BCE’s Bell Canada unit. BCE is concerned that Manitoba is cutting its ties with its parent; it sold a 40% stake in the Bell West Internet venture back to BCE earlier this year.