TORONTO and MONTREAL – Look Communications and its parent company Unique Broadband Systems said Thursday that the actions of Rogers Communications and Bell Canada Enterprises are interfering with the planned sale of Look.
In a release, Look claimed "the two partners of Inukshuk Wireless Partnership LLP ("Inukshuk Wireless") – Rogers Inukshuk Telecommunications Inc., a subsidiary of Rogers Communications Inc ("Rogers") and NR Communications Limited, a subsidiary of BCE ("Bell") – have continued this week to apply pressure to Look and its parent company UBS," reads the press release.
"On Monday, April 9th, 2007, Look was informed that Rogers’ legal counsel had written to the Ontario Securities Commission on Thursday, April 5th, 2007 to say that the comments related to the UBS litigation of Inukshuk Internet Inc., made by Look and UBS at their Annual Meetings of Shareholders, should among other things, have been ‘tempered with cautionary language’.
"One day later, on Tuesday, April 10th, 2007, Bell Canada sent Look a Notice of Intent to Disconnect services effective 30 days from the date of notice. These two events, on consecutive days, continue to position Rogers, Bell and Inukshuk Wireless against Look and UBS."
Look, which has struggled since its inception as a terrestrial digital television distributor and lately as an Internet company, has approximately 100 MHz of spectrum and a broadcast license for mobile video services in Canada.
"Look hired investment bankers, Greenhill & Co, in late 2006 (October) to review strategic alternatives to maximize shareholder value. Over the past few months, Greenhill has held talks with interested parties in pursuit of this process. In an about-turn, some of these discussions stopped abruptly and were followed by these two events on consecutive days," says the Look release.
Look and UBS believe Rogers’ complaint to the OSC is "poorly conceived, erroneously based and without merit. Look and UBS will both deal with the OSC on that basis."
The company will also challenge Bell Canada’s attempt to disconnect services. "Look has also retained McMillan Binch Mendelsohn LLP to prepare a Statement of Claim against Bell Canada that goes back many years to the time when Bell was the principal shareholder of Look," says the statement.
The management of Look and UBS believe that these recent events are not totally unexpected from Rogers and Bell Canada and result from:
* UBS’ legal action calling for, among other things, specific performance with respect to a contract between UBS Wireless Services Inc. and Inukshuk Internet Inc., signed on January 16th, 2003; and
* The recent review of strategic alternatives to maximize shareholder value.
"Look and UBS believe it prudent to notify all stakeholders in their companies, including Look’s 60,000 subscribers, as well as the appropriate regulatory authorities, of the recent behaviour and actions of Bell Canada and Rogers with respect to these events," continues the release.
