Manitoba Telecom Services completed its acquisition of Allstream (formerly AT&T Canada). Allstream operates a nationwide network spanning 18,000 km and is focused on the business market.
Bell Canada has commenced a legal proceeding against Allstream Inc. claiming damages of $150 million from Allstream for conspiracy and inducing MTS to breach certain obligations to Bell Canada. MTS has advised Allstream that MTS will vigorously defend all of the Bell Canada legal proceedings. http://www.mts.ca
- In March 2004, Manitoba Telecom Services (MTS) first announced plans to acquire Allstream (formerly AT&T Canada) in a transaction valued at $1.7 billion. At the time, BCE (the parent company of Bell Canada ), which is the largest shareholder in Manitoba Telecom and holds a 22% stake, issued a brief statement calling the deal “a significant change in the strategic direction of MTS,” and saying it’s weighing its options.