UNITEL UP FOR GRABS
By Adnews Staff
In the midst of a takeover controversy, Toronto-based Unitel Communications is running an agency competition. The telecommunications company has six Toronto agencies vying for its account, with estimated billings of $20 million to $30 million. Agencies on the short list are: incumbent Ogilvy & Mather, FCB Canada, MacLaren McCann, Vickers & Benson Advertising, Young & Rubicam and Carter Craig. AT&T Canada and a consortium of three banks made a deal in September to buy financially troubled Unitel in September for $250 million. In the U.S. McCann-Erickson, FCB and Y&R are all on the roster of New York-based AT&T Corp. FCB and Y&R are AT&T's agencies in Canada. Unitel competitor Call-Net Enterprises is trying to spike the takeover of Unitel by AT&T. Call-Net has filed an application with the Canadian Radio-television and Telecommunications Commission to have the deal stopped. Call-Net says the takeover violates foreign ownership rules by giving the U.S. phone giant control of Unitel. Call-Net owns long distance phone service company Sprint Canada.