|Bid||94.68 x N/A|
|Ask||95.03 x N/A|
|Day's Range||94.43 - 95.26|
|52 Week Range||87.57 - 132.00|
|Beta (5Y Monthly)||0.54|
|PE Ratio (TTM)||12.38|
|Forward Dividend & Yield||2.32 (2.43%)|
|Ex-Dividend Date||Jul 28, 2020|
|1y Target Est||N/A|
(Bloomberg) -- With the expiration of an $8.4 billion play for the Cogeco group, investors are asking what’s next for rival Rogers Communications Inc.Rogers, Canada’s no. 3 cable and wireless firm by market value, teamed up with Altice USA Inc. to launch a hostile takeover bid for Quebec-based Cogeco Inc. and subsidiary Cogeco Communications Inc. When the controlling Audet family rejected the offer, they upped the price -- but the family stood firm and wouldn’t negotiate. The offer runs out today.“We’re disappointed that we didn’t get the ability to engage with either the Audet family or the Cogeco boards on what is a terrific offer, a highly valued offer,” Rogers Chief Executive Officer Joe Natale said Wednesday at an industry conference.However, expanding operations in Quebec is still an option, he said. “We continue to leverage the business we have in Quebec. We’ve been there for 35 years and we’ll continue to build.”Rogers owns 41% of the subordinate voting shares of Cogeco Inc. and 33% of the subordinate voting shares of Cogeco Communications, according to a Sept. 2 statement. Natale said on Oct. 22 that Rogers would revisit the investment if the deal didn’t go through, but did not explicitly say whether it would sell the stock. The board would “review our capital allocation priorities,” he told analysts.Shares of both Cogeco companies have erased gains posted the day of the hostile bid. Cogeco Inc. is down 24% this year and Cogeco Communications is down 17%.“On our side, nothing has changed,” Cogeco spokesperson Nancy Bouffard said in an email Monday. “We continue to focus on growing our business and building long-term value for all our stakeholders.”Doomed to FailRogers’ interest in Cogeco began decades ago, when founder Ted Rogers took on a minority stake. Any aspirations to take over the firm were limited by the Audets, whose holding company, Gestion Audem, controls the voting rights.Some analysts had speculated Altice’s support might tip the scales. The American firm is controlled by French-Israeli billionaire Patrick Drahi who has a track record pulling off difficult M&A transactions. Instead, communications among the three firms became increasingly testy. Louis Audet, Cogeco’s executive chairman and son of its founder, made it known the family was not interested in ceding control of the organization they built.“It became very clear early on that the family was not going to sell,” University of Toronto business professor Richard Powers said. “I don’t think they could have offered anything that would have convinced them of that.”Rogers must have thought a hostile offer had a chance of succeeding or they wouldn’t have embarked on it, Powers said. “This wasn’t just a foolish gambit by Rogers,” he said. “They obviously had some information that would suggest that there was an opportunity here and they went at it full force.”Ultimately, family legacy proved more important for Cogeco, said Bloomberg Intelligence analyst John Butler. “If your whole life is wrapped up into a company that you built over the years, and it’s providing more than suitable compensation, why sell?”For industry watchers, it’s now a waiting game to see if Rogers sells all or part of its Cogeco investment. “We’ll see if we hear about any next steps by Rogers before or with its 4Q reporting in January,” National Bank of Canada analyst Adam Shine said in an email.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Cogeco Communications (USA) Inc. New York, November 11, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Cogeco Communications (USA) Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
(Bloomberg) -- Altice USA Inc. raised its bid for Cogeco Inc. and Cogeco Communications Inc. to $8.4 billion, but the offer was quickly turned down by the Canadian cable firm’s controlling shareholder.“We are not interested in selling our shares,” Louis Audet, president of Gestion Audem Inc., said in a statement. Gestion is a private holding company that has 69% of Cogeco’s voting rights.Altice’s revised offer Sunday included C$900 million ($682 million) to the Audet family for their multiple classes of voting shares of both companies, as well as C$123 per share for the remaining Cogeco subordinate voting shares and C$150 per share for those of Cogeco Communications.Dexter Goei, chief executive officer of Altice, said the offer incorporated feedback from discussions with some shareholders. Goei asked the boards to consider the bid and “engage with us to discuss our proposal.”Altice first announced an unsolicited offer worth about $7.8 billion on Sept. 2. Its proposal would see Altice obtain the cable company’s U.S. assets, Atlantic Broadband, and sell the rest to Toronto-based Rogers Communications Inc.Quebec Play“This revised offer provides significant additional value for all shareholders and upholds our commitment to C$3 billion worth of investments over the next five years in Quebec, including maintaining the Cogeco brand and Cogeco’s headquarters in Quebec,” Rogers Communications Inc. Chief Executive Officer Joe Natale said in an emailed statement Sunday.Rogers’ pledge to keep Cogeco’s Quebec presence is likely aimed at heading off objections from the nationalist provincial government.“Members of the Audet family unanimously reject this further proposal,” Audet said in his statement on Sunday. “Since this is apparently not registering with Rogers and Altice, we repeat today that this is not a negotiating strategy, but a definitive refusal.”Gestion Audem holds 69% of the voting rights at public holding company Cogeco Inc., while Rogers has control over 13% of the votes. For Cogeco Communications, Gestion holds 83% of the votes and Rogers has 6%.Rogers has said its pledge to spend C$3 billion in the province over the next five years would help ensure 5,000 jobs for the combined Rogers and Cogeco entity.Shares of Cogeco Inc. have climbed 7.4% since the deal was announced, while Cogeco Communications has gained 4.2%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.