Proposed Bruce Telecom Sale. Council made a decision after numerous factors lined up including CRTC rulings that were not in BTs favour. BT would need substantial revenue injections to compete in a high risk volatile market. Too high of a risk thought to be born by taxpayers. A favourable assessment of the company compared to historical evaluations resulted in the potential sale. The sale included many conditions requested by council (e.g., union recognition, retention, pension). It was hoped that a company with bigger market shares and deeper pockets could infuse the much needed capital for upgrade and expansion (note: Annual dividend payment to the Municipality was a mistake in my opinion - this money should have gone back into company to compete). The potential sale would help to keep the jobs here, to help the company prosper and compete in Bruce County. This did sale did not materialize. A complaint to the Competition Bureau triggered a review of sale and the request for the potential buyer to divest of some of its portfolio is sale went through. This is common in the telecommunications industry. The actual sale did not meet the threshold for Competition Bureau review and would have likely proceeded but complaints triggered the process. Democracy at work. It was not the Municipalitys lack of due diligence to know this or imagine this.. this is the buyers responsibility.The buyer used this ruling to pull out of the sale. There is debate about whether or not this pull out constitutes a violation of the purchase contract. This debate would only be settled in court. So what next? I will start another post to outline my thoughts at this point.
Posted on: Tue, 02 Dec 2014 14:37:08 +0000
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