Telus withdraws Mobilicity bid

22 May 2014 | Kavit Majithia

Canadian operator Telus has withdrawn its $350 million bid to acquire wireless company Mobilicity, according to local media reports.

An acquisition of Mobilicity has been touted for a few months, but no deal has yet surfaced and Telus’ withdrawal is the latest setback in the possible sale of the company.

Telus is predominately interested in acquiring the company’s valuable spectrum frequencies, and the decision now leaves Mobilicity without a solid bidder to acquire the business.

It is presently under bankruptcy protection, and reportedly owes bondholders hundreds of millions of dollars.

The government has voiced its concern over the deal, given the transfer of spectrum between the two companies, which could be a reason why Telus has withdrawn from the process.

The federal government has been adamant that it does not want a major incumbent to take wireless spectrum, as it bids to increase competition in the market through the entrance of new players.

Telus also made bids to acquire other smaller companies, including Data & Audio Visual Enterprises Wireless, despite government opposition.