MONTREAL and THUNDER BAY – Bell Nordiq Group and TBayTel (Thunder Bay Telephone) announced Monday that they have agreed to extend their 45-day exclusivity agreement, which was scheduled to expire.
Both parties have agreed to an extension until the middle of January 2006. “During this period, both parties will continue to have discussions regarding the terms of a possible transaction,” says the press release. TBayTel has agreed not to solicit, initiate or encourage proposals from third parties or otherwise provide information to such parties.
TBayTel sent out a request for proposals (RFP) looking for potential partners earlier this year. The city-owned telco wants to expand its service offering (including into television) but doesn’t have the size to do so economically.
While at first saying it wasn’t necessarily after a transaction, this release mentions the word so many times, that the two sides are obviously discussing it.
“There is no assurance that a transaction will result from these continuing discussions,” adds the release. “However, should the negotiations progress further, Bell Nordiq Group’s board of directors, as well as the city of Thunder Bay, will be asked to review the transaction’s contemplated terms and conditions.
“Furthermore, the closing of this transaction would be subject to various approvals, including agreement by both parties as well as other standard regulatory approvals.”
Bell Nordiq Group Inc. holds a 63.4% interest in and is the general partner of both Télébec, Limited Partnership and NorthernTel, Limited Partnership. Bell Nordiq Group Inc. manages the business and affairs of each limited partnership and provides administrative and support services to Bell Nordiq Income Fund and Bell Nordiq Trust. Bell Canada indirectly owns 100% of Bell Nordiq Group Inc.
