Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (8897)	1/8/1999 2:43:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 18016

AT&T: Telecoms company seeks Canada partners By Scott Morrison in Toronto AT&T said yesterday it was looking for strategic partners in Canada after three of the country's banks sold their stakes in the US telecommunications group's Canadian long-distance operation. The move is part of an C$800m (US$530m) initiative to restructure AT&T Canada into a full-service telecoms group. The banks' withdrawal from AT&T Canada Long-Distance Services was mandated by banking regulations. The banks' collective equity in LDS - 50 per cent of non-voting equity and two-thirds of voting shares - will be held in trust while AT&T negotiates with potential partners, which would invest in the company's Canadian expansion. The trust is funded by AT&T, but officials would not reveal its value. Analysts estimated the value of LDS at C$1bn-C$1.3bn. AT&T also declined to provide details of its restructuring, but said a large portion would go toward compensating the banks. AT&T said it was looking for Canadian partners with technology and access to customers through their networks, such as utilities and cable companies. Cogeco and Videotron, two Quebec-based cable-television operators, are seen as likely partners. The two have recently completed share issues and plan to enter the local telephony market. Observers questioned why AT&T did not wait to find a partner or investor before announcing a change in the ownership structure. "It seems they could be trying to create a bidding war," said Dvai Ghose, telecoms analyst at HSBC Securities. AT&T's Canadian long-distance, reselling and some administrative functions will be consolidated under the banner of AT&T Canada, which will also launch a local service in 1999. Under the previous ownership structure, AT&T Canada Enterprises, representing the US parent, held one-third of the Canadian long-distance services company's voting shares and 50 per cent of non-voting equity, the maximum allowed under foreign ownership rest