BT, AT&T ACQUIRE OF STAKE IN ROGERS, AT&T CANADA
By Adnews Staff
British Telecommunications plc of London and AT&T Corporation of New York have announced the two companies are making their second joint acquisition. BT and AT&T will acquire a 33.3 percent stake in Rogers Cantel Mobile Communications Inc. for approximately $1.4 billion (CND) in cash. The announcement is expected to strengthen the co-branding relationship Rogers and AT&T formed in 1996. British Telecommunications will also acquire 30 percent of AT&T's 31 percent stake in AT&T Canada for approximately $600 million (CND). The closing of these transactions is expected on or around August 16. These transactions follow BT and AT&T's joint investment in Japan Telecom in April of this year. As part of the announcement, Rogers Cantel and AT&T Canada, which operate under the banner Cantel AT&T, said they will accelerate the bundling and joint marketing of their wire and wireless services for Canadian business customers. "The combination of AT&T, BT, Rogers Cantel and AT&T Canada will give Canadian businesses even better access to unrivaled mobile and wired services nationwide," John Zeglis, president of AT&T said.
In other Rogers Cantel news, the wireless provider is teaming up with Canada Post Corporation of Ottawa. Beginning immediately, Canada Post outlets across the country will be selling Cantel AT&T Pay As You Go cards. "Canada Post is in the business of helping Canadians to communicate," said Michel Tremblay, vice-president of retail business at Canada Post. "Joining forces with Canada's largest national wireless carrier and providing Canadians with access to this popular wireless communications service is a logical fit for both our companies and our customers." Over 1250 Canada Post locations throughout the country will be offering the Pay As You Go cards. Advertising is scheduled but plans have not be confirmed. PR for Rogers Cantel is handled by Cohn & Wolfe of Toronto.