Bell Aliant Narrows It’s Focus

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $29.24 (Toronto symbol BA.UN: SI Rating: Above average) has agreed to sell its 87.14% stake in its telephone directory subsidiary for $330 million. The fund plans to use $119 million of the proceeds to pay for its hostile takeover of Amtelecom Income Fund, which operates local telephone and cable TV systems in southwestern and central Ontario. Amtelecom is a good fit with Bell Aliant’s current Ontario operations. Amtelecom has no controlling investor, so it will probably look for another buyer, if only to get Bell Aliant to raise its bid. Bell Aliant will use the rest of the cash to buy back 10% of its units, and expand its highspeed networks. Bell Aliant is still a buy. buy…

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