Updates on Manitoba Telecom Services, TransCanada Corporation, TransAlta Corp. and Bell Aliant Regional Communications Income Fund

Article Excerpt

MANITOBA TELECOM SERVICES $39.63 (Toronto symbol MBT; SI Rating: Average) has announced it will participate in the upcoming auction of wireless frequencies (called ‘spectrum’ in the industry). If successful, that would let it offer wireless services outside of Manitoba. The company has formed a consortium with the Canada Pension Plan Investment Board and The Blackstone Group L.P. Each will own a third of this partnership. The wireless industry is highly competitive, but growing fast. This partnership will cut Manitoba Tel’s share of the start-up costs, and help it keep paying its $2.60 dividend, which yields 6.6%. Manitoba Tel is a buy. TRANSCANADA CORPORATION $36.30 (Toronto symbol TRP; SI Rating: Above average) dropped in price recently after announcing the acquisition of the 2,480-megawatt Ravenswood Generating Facility located in Queens, New York for about $2.9 billion U.S. The plant has the capacity to service 21% of New York City’s peak electricity load. Investors worry that the deal could be a repeat of the 1998 acquisition of…