Rogers and Shaw applications are pictured on a cellphone in Ottawa on Monday, May 9, 2022. THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA – An internal presentation to Telus Corp.’s board revealed that efforts were made to undermine Videotron Ltd.’s purchase of Shaw-owned wireless carrier Freedom Mobile.
The presentation, which was made public during the hearing on Rogers Communication Inc.’s proposed $26-billion takeover of Shaw Communications Inc., referred to the “danger” of Videotron and Quebecor Inc. CEO Pierre Karl Péladeau as a remedy partner.
It also showed that Telus aimed to influence federal government officials and the Innovation, Science and Economic Development Canada’s view of the deal through what it called Project Fox.
In addition, part of Project Fox’s advocacy, according to the presentation, also appeared to involve the announcement of an agreement with Globalive to boost that company’s bid to acquire Freedom. In May, Globalive announced it signed a network and spectrum sharing agreement with Telus.
Quebecor agreed to buy Freedom in a $2.85 billion deal earlier this year.
The sale of Freedom Mobile to Videotron would see Quebecor buy all of Freedom’s branded wireless and internet customers as well as all of Freedom’s infrastructure, spectrum and retail locations in a move that would expand Quebecor’s wireless operations nationally.
Meanwhile, as the second week of the hearing got underway, the judge presiding over the public hearing said too much of the case was being held behind closed doors.
The head of the Competition Tribunal panel, Chief Justice Paul Crampton, said there had been an “overuse” of the confidential setting so far.
Crampton said he will be more vigilant in deciding what confidential evidence is presented during the proceedings, and asked the lawyers involved to make a greater effort to reduce the need to move to a confidential setting.
He noted, however, that there has been competitively sensitive information in some of the witness statements and that it is important to ensure that this is not publicly disclosed as it “could harm competition.”
The hearing aims to resolve the impasse between the Commissioner of Competition and Rogers and Shaw.
The Competition Bureau is one of three regulatory agencies that must approve the deal before it can close, in addition to the CRTC and Innovation, Science and Economic Development Canada.
The hearing is expected to last four weeks with oral arguments scheduled for mid-December.
Rogers is hoping to close the Shaw deal by the end of the year, with a possible further extension to Jan. 31, 2023.
This report by The Canadian Press was first published Nov. 14, 2022.
Companies in this story: (TSX:RCI.B, TSX:SJR.B, TSX:QBR.B)
