Manitoba and Bell Canada reach agreement over Allstream purchase

Canadian fixed line telcos Manitoba Telecom Services (MTS) and Bell Canada are reported to have reached an agreement to end a legal dispute arising from the former’s USD1.13 billion purchase of Allstream, announced in May. Under the legal arrangement, MTS has offered to pay USD57 million to settle a series of lawsuits against it, and, in addition, both sides have reportedly agreed to unwind their existing commercial arrangements in such a way as to maintain ‘customer service, protect confidential information and enable MTS and Bell to satisfy existing obligations to third parties’. MTS announced it was to bid for Allstream in early May, but the move provoked an instant response from its parent company BCE which asked the courts to intervene and stop the sale on the grounds that it breached a strategic alliance agreement between the pair.