(Reuters) - Verizon Communications Inc (VZ) has decided to put off the acquisition of two small Canadian wireless companies until after a government auction of wireless licenses in January, a Canadian newspaper said, citing people familiar with the matter.
The U.S. telecommunications firm is instead focusing on whether to take part in a key Canadian spectrum auction, which has a September 17 deadline for applications, the Globe and Mail said. Potential bidders in the auction are barred from negotiating any deals with other bidders until next year.
The newspaper said it was not clear what prompted the change in strategy and whether this signaled Verizon was less enamored about entering the Canadian market or whether it wanted to drive down the prices for the firms Wind Mobile and Mobilicty.
Verizon had tabled a $700 million preliminary offer for Wind Mobile and signed a non-disclosure agreement with Mobilicty in recent months, it said.
This month Rogers Communications Inc (RCI-B.TO), Canada's largest wireless company, attempted to thwart Verizon's entry into the country by backing a private equity bid for the two carriers.
In July, Reuters reported that Mobilicity, legally known as Data & Audio-Visual Enterprises Holdings Inc, was in talks with Verizon, among others, in connection with a potential acquisition.
i have to believe that VOD is still the brass ring for VZ ... although VZ will need to buy up smaller outfits to fuel
decent growth going forward .. the next 3-5 years should see much lower capex as 4G LTE gets built out ,
if FIOS gets enough traction , then there's more fibre to string around ...
basically i look for VZ to remain solid , continue to pump divs , but not looking for any boom in share price , probably 5-10% pps appreciation going forward , but that's pretty nice when added to the div ... g