Analyst believes marriage between Telus and BCE is nearing reality

Are Bell Canada and Telus, Canada's two largest telcos, going to reignite the idea of consummating a formal marriage? Well, RBC Capital Markets analyst Jonathan Allen thinks that the idea of such a union could become reality as more competitors enter the Canadian telecom market. The idea of a merger between the two Canadian rivals first emerged in the spring of 2007 when Telus considered making a premium offer for Bell Canada.

Allen believes if the telcos announce a deal now, they should consider "a merger of equals," where Telus shareholders would receive one-third of the merged company and BCE would get two-thirds. "Furthermore, with no premium paid, there would be no additional debt leverage," Allen said. "BCE CEO George Cope's experience at both firms would be very helpful in bringing the two companies closer together and eventually merging the operations."

For more:
- National Post has this article

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