Eastlink trumps Bell Aliant’s offer for Amtelecom

4 Apr 2007

Atlantic Canada-based cable operator Bragg Communications Inc, which operates as Eastlink, yesterday tabled a friendly all-cash takeover bid worth CAD104 million (USD90 million) for regional telco Amtelecom Income Fund (Amtelecom), trumping a previous hostile offer, reportedly worth CAD95 million in cash, from larger Atlantic Canadian rival Bell Aliant. Eastlink, Canada’s sixth largest cableco, operates in Nova Scotia, Prince Edward Island and New Brunswick, and offers triple-play cable internet, telephony and video services. Amtelecom is the incumbent local telephony provider to several regions in southwestern and central Ontario, with around 27,000 fixed lines, 13,000 internet subscribers and 9,000 cable TV customers. Amtelecom said it has entered a support agreement with Bragg that prevents Amtelecom from seeking competing bids and gives Bragg the right to match any rival offers. Bell Aliant said yesterday that it would extend its bid, which the company had said was worth about CAD119 million including debt, until 13 April.

Canada, Bell Aliant (old), Eastlink