Cancom acquisition plan irks investors

Article Abstract:

Canadian Satellite Communications Inc.'s (Cancom's) proposed acquisition of Star Choice Communications Inc. in a stock swap deal, has brought some analysts and shareholders complaining. The deal calls for Cancom to exchange one of its shares for every 4.8 Star Choice shares, thereby, resulting to 34 million shares outstanding for Star Choice on a fully diluted basis. Michael Perrault, an analyst at M.G.P. Media Consulting of Montreal, Quebec, said he can not find any answer as to how the Cancom-Star Choice deal would benefit Cancom. Star Choice reportedly lost C$42.6 million in the year ended Aug. 31, 1998, while Cancom has been profitable after years of restructuring. Cancom Chief Executive Officer Duncan McEwan said the addition of Star Choice will allow Cancom to boost its growth.

Comment:

Its proposed acquisition of Star Choice Communications Inc in a stock swap deal has some analysts & shareholders complaining

Article

Cancom shareholders approve star choice deal

Article Abstract:

Canadian Satellite Communications Inc (Cancom) shareholders ratified on Apr 14, 1999 a plan to swap Cancom shares for Star Choice Communications Inc shares. Almost all shareholders voted for the plan that would position Cancom better to compete in the ever-dynamic telecommunications industry. According to Cancom CEO Duncan McEwan, the deal would give Cancom additional subscribers as well as added leverage in the DTH market.

Shaw's play for Cancom gets mixed reviews

Article Abstract:

Economic analysts watch with mixed reactions to Shaw Communications Inc.'s $675-million acquisition of the minority stake in Canadian Satellite Communications Inc.

Telephone communications, exc. radio, Mergers, acquisitions and divestments, Shaw Communications Inc., Satellite communications services industry