UNITEL HAS NEW OWNERS
By Adnews Staff
Long distance phone service discounter Unitel Communications has been taken over by U.S.-based multinational AT&T and three banks to which Unitel owed money. Toronto-based Rogers Communications and Canadian Pacific Ltd., the original owners of Unitel, have walked away without a cent from Unitel. AT&T, which previously held 22.5% of Unitel, now has 46%. the other 54% is held by the Bank of Nova Scotia, Toronto Dominion Bank and Royal Bank of Canada. Subject to regulatory approval, this will put AT&T at the switchboard. The latter is to provide management and consulting services to Unitel under a long-term contract, and is allowing Unitel to use the AT&T name. Unitel was at the point of going out of business when the deal was made this week. Ogilvy & Mather is Unitel's ad agency. AT&T has Young & Rubicam in Canada.