FONOROLA TURNS DOWN CALL-NET
By Adnews Staff
Fonorola shareholders have said no to Call-Net Enterprises' takeover bid of $1.6 billion because it isn't enough money. Call-Net's hostile bid is "an obvious attempt to deprive Fonorola shareholders of the substantial value we have created and continue to create on their behalf, Fonorola president and CEO Jan Peeters says in a release. In addition, Call-Net's business plan focuses only on the Canadian market and Fonorola of Montreal is poised to expand its U.S. business. Had the deal been approved Call-Net of Toronto would have become Canada's second largest long distance provider, behind BCE Inc., Bell Canada's parent. Call-Net wants to purchase Fonorola to strengthen its presence in the business market. Call-Net is the parent company of Sprint Canada.