Verizon may not move for Canadian cellcos; Wind might bid for Mobilicity

16 Aug 2013

Canadian newspaper The Globe & Mail reported yesterday that US giant Verizon was putting off its previously publicised potential acquisitions of second-tier Canadian cellcos Wind Mobile and Mobilicity while contemplating taking part in Ottawa’s January 2014 700MHz 4G wireless spectrum licence auction. The deadline for initial bids is 17 September 2013, and if Verizon does decide to participate, rules prevent it from continuing negotiations on acquisition deals until after the auction has finished. In response to the news, Wind Mobile’s CEO and chairman Anthony Lacavera reiterated a previously stated possibility that his company could make a takeover bid for Mobilicity – if it does not have to bid against Verizon. Lacavera said that the latest report of Verizon’s intentions means that Wind would consider buying Mobilicity to narrow down the competition in the 4G auction while also creating a stronger competitor. ‘It puts me in a position to move on Mobilicity before the auction,’ Lacavera stated, while adding: ‘I can’t outbid Verizon. So if they really want to buy it before the auction I’m not going to be successful. It’s just a mathematical reality.’

Canada, Freedom Mobile, Mobilicity, Verizon Communications, Verizon Wireless