December 24, 2014 - 4:30 PM
TORONTO - Two of Canada's largest telecom giants have reached a deal over control of wireless phone retailer Glentel Inc.
A news release from BCE Inc. issued late Wednesday says it has reached an agreement with Rogers that will see each company own 50 per cent of the Burnaby, B.C. based company.
Bell says Rogers will drop a court challenge it launched in Ontario to get an injunction blocking the move and will pay half the takeover cost.
Bell announced last month that it was acquiring Glentel in a deal valued at $670 million in stock, cash and debt.
Rogers claimed in court documents that Glentel (TSX:GLN) had not sought its approval for the BCE (TSX:BCE) acquisition, a requirement of their agreement.
Glentel countered that it was up to its board of directors, not a supplier to decide on the takeover.
Glentel sells wireless products and services from a variety of carriers including Rogers Wireless, Bell Mobility, Chatr, Fido, SaskTel and Virgin Mobile.
It has nearly 500 retail locations across Canada under the banners WirelessWave, Wave Sans Fil, TBooth Wireless and Wireless Etc.
It also operates 735 locations in the U.S. and 147 in Australia and the Philippines.
A special meeting of Glentel shareholders is planned for January 12. The company's board of directors approved the Bell takeover.
News from © The Canadian Press, 2014