Orascom withdraws bid for Wind Mobile
A Vimpelcom owned subsidiary has withdrawn its bid to take control of Canada’s Wind Mobile.
The withdrawal creates further uncertainty over the future of the Canadian wireless company, after Orascom Telecom, Vimpelcom majority-owned Egyptian subsidiary, dropped its application to increase its stake in Wind from 32% to 65%.
Anthony Lacavera, founder and chief executive of Wind Mobile was looking to divest his one third stake in the company if Orascom’s application was accepted.
Orascom has had an active interest in Wind, and put up much of the funding during the company’s 2009 launch, but rules on foreign ownership forced the company to only take a minority interest.
The company has said it remains interested in Wind and is working with regulators, despite recent suggestions Vimpelcom was looking for an exit out of Canada.
Wind will reportedly require an addition C$1 billion in funding in its next auction to grow its network
There have been suggestions that the three smaller Canadian wireless operators, Wind, Mobilicity and Public Mobilewill merge its operations in a bid to compete with the larger players.