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MTS vows to move forward with Allstream transaction despite legal action by Bell

Manitoba Telecom Services Inc. (MTS) confirmed its acquisition of Allstream is on track to close in early June.


May 21, 2004  


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Manitoba Telecom Services Inc. (MTS) confirmed its acquisition of Allstream is on track to close in early June.

The announcement came hours after Bell Canada filed an action in the Ontario Superior Court of Justice seeking an injunction to prevent MTS from breaching the terms and conditions of the strategic alliance agreements between the two companies.

Bell contends that in moving forward with its purchase of Allstream, MTS has ignored the rights Bell has under the contracts in place between the two companies.

Bell Canada has been left with no alternative but to seek legal recourse to ensure that its significant financial and commercial interests are protected on behalf of the shareholders of Bell Canada Enterprises Inc., it said.

“There are numerous commercial and ownership rights between Bell and MTS that would be breached upon the completion of the proposed Allstream transaction.,” the company said in a statement. “These rights are provided for in commercial and shareholder agreements, some of which include up to three-year termination clauses.”

MTS believes that Bell has no basis for interfering with the transaction, and will be responding appropriately when the matter is scheduled for hearing, the company said.