Canadian telecommunications provider Rogers Communications Inc. said it received a notice from AT&T Wireless Services Inc. on its intent to “explore options to monitize its stake” in Rogers Wireless Communications Inc., which currently consists of 48.6 million class A multiple voting shares and class B restricted voting shares held through their JVII Partnership. RCI noted the letter stated AWS was interested in negotiating for a period of 21 days to attempt to reach an agreement on a private sale of its entire stake in Rogers Wireless back to the Canadian company.
AWS holds more than 30 percent of Rogers Wireless.
RCI added that under its shareholders agreement it has the right of first negotiation pursuant to which RCI and AWS are required for a period of 21 days from the receipt of notice from AWS to negotiate exclusively and in good faith for the possible purchase by RCI of AWS’ Rogers Wireless shares. If an agreement is not reached, AWS has a period of 60 days in which to sell its stake in Rogers Wireless to a third party that must be higher than the highest price offered by RCI.
RCI said it has not made a decision on the offer to purchase AWS’ Rogers Wireless shares.
AWS is currently in the process of being acquired by Cingular Wireless L.L.C., which is expected to close by the end of the year, and is reportedly in talks with a number of its affiliates in the United States regarding future relationships.
