Telus confirms talks with BCE

Telus confirmed early Thursday morning it has "entered into a mutual non-disclosure and standstill agreement and is pursuing non-exclusive discussions with BCE about a possible business combination as part of the strategic review process announced by BCE on April 17, 2007."

"Telus believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and Telus stakeholders. It would be an all-Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry," said Darren Entwistle, president and CEO of Telus, in a statement. "Telus has a unique opportunity to create a truly national Canadian enterprise with the requisite balance sheet strength as well as scale and scope to continue Telus’ development as a global leader in the deployment of state of the art technology and innovative new services for customers."

Given the accelerated process that BCE has adopted, among other things, there is no assurance that Telus and BCE will continue discussions or enter into any agreement to proceed with any transaction, Telus warned in its statement.

It was first reported on nationalpost.com Wednesday night that the Western Canadian telephone company, which many observers had expected to sit out the auction for Bell, plans to make a cash-and-stock bid for its Eastern Canadian counterpart.
© CanWest News Service 2007
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