BCE and Ameritech Complete Strategic Partnership
----First step completed, now we wait for the next move!
Tuesday June 1, 2:07 pm Eastern Time
Company Press Release
BCE and Ameritech Complete Strategic Partnership
MONTREAL, Quebec, June 1 /CNW-PRN/ - BCE Inc. and Ameritech Corporation today announced they have finalized their strategic partnership announced in late March. As part of the partnership, Ameritech has invested CDN $5.1 billion for a 20 per cent minority interest in Bell Canada, previously 100 per cent owned by BCE Inc.
The primary focus of the partnership will be on developing growth opportunities and introducing new services for customers. Bell Canada provides a full range of communications services to customers, including wired and wireless local and long distance telephone services, Internet access, high-speed data services and directories. Bell Canada, its telecom partners and subsidiaries provide services through 13.6 million access lines, including 11 million in Ontario and Qu\006bec. Bell Canada also serves more than 2.1 million wireless customers, in markets covering almost 20 million people.
About BCE and Ameritech
BCE is Canada's largest communications company. Through its operations in communications services, BCE provides residence and business customers in Canada with wireline and wireless telecommunications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Abroad, through Bell Canada International, BCE provides communications services to an additional 3.6 million customers in Asia and Latin America. BCE also has an extensive international presence through its ownership in Nortel Networks, a global leader in the design and building of communications networks, as well as through Teleglobe, an international telecommunications carrier. BCE shares are listed in Canada, the United States and Europe.
Ameritech (NYSE: AIT - news) serves customers in 50 states and 40 countries. Ameritech provides a full range of communications services including local and long-distance telephone and data, cellular, paging, security, cable TV, Internet and more. In the United States, Ameritech provides services through 21.1 million access lines and has 3.7 million wireless customers. In Europe, Ameritech has investments in 15 countries with a total value of more than US $10 billion. One of the world's 100 largest companies, Ameritech (www.ameritech.com) has 70,000 employees, 1 million shareowners and US $30 billion in assets.
Background Information
BCE Inc./Bell Canada/Ameritech
Reorganization of Bell Canada:
To consolidate certain holdings under BCE Inc. and Bell Canada, the following corporate transactions have been made.
Bell Canada has acquired on May 31, 1999 BCE's indirect interests in the following investments:
- 65.3% (50,142,941 common shares) of BCE Mobile Communications Inc., a
wireless company with more than 2.1 million customers
- 21.6% (54,660,728 common shares) of Teleglobe Inc., a provider of
international telecommunications services
- 41.6% (52,540,265 common shares) of Aliant Inc. (the company under
which Bruncor Inc., Maritime Telegraph and Telephone Company Limited
and NewTel Enterprises Limited were combined on May 31, 1999)
- BCE's equity investments in three other regional Canadian
telecommunications companies.
BCE has acquired from Bell Canada:
- 66.3% (52,775,471 common shares) of BCE Emergis Inc., an electronic
commerce company.
- 44,356,432 Class A Subordinate Shares of CGI Group Inc., the largest
information technology consulting company in Canada. BCE now holds
56,356,432 Class A Subordinate Shares and 3,477,366 Class B Shares
(multiple voting) which represent approximately 44.6% of the equity of
CGI.
In view of these transactions, Bell Canada has issued debt of CDN $ 2,085 million payable to BCE Inc.
With respect to BCE's interest in BCE Emergis or CGI Group, or Bell's interest in any of BCE Mobile, Teleglobe or Aliant, each of BCE and Bell Canada reserves the right to change its plans and intentions at any time as it deems appropriate. In particular, BCE or Bell Canada, as the case may be, may acquire additional securities or may sell securities from time to time in public or private transactions.
Source BCE Inc.; Bell Canada; Ameritech
|
