Globalive’s Lacavera calls for more transparency on Freedom Mobile bidding process

Article content

The head of Globalive Capital Inc. says he is pressing Ottawa to bring more transparency to Rogers Communications Inc.’s sale of the Freedom Mobile wireless brand, part of Rogers’ effort to gain regulatory approval for the acquisition of Shaw Communications Inc.

Article content

Anthony Lacavera, founder and chairman of Globalive — which is reportedly among the bidders for Freedom — told the Financial Post Monday that he thinks Francois-Philippe Champagne, the minister of innovation, science and industry, should be concerned that viable competitors are being kept at bay.

Lacavera called the process a “sham” and suggested that Rogers is seeking a buyer that would serve shareholders’ interests rather than boosting competition in the sector.

“I think the minister should ensure there is a very fair, open, competitive and transparent process for the Freedom Mobile assets to ensure the best outcome for Canadians,” Lacavera said, noting Champagne has the power to approve the buyer.

Rogers did not immediately respond to a request to comment on Lacavera’s concerns.

Article content

Freedom Mobile was founded by Lacavera in 2008 under the name WIND Mobile. The company was later sold to Shaw for $1.6 billion and renamed in 2016.

Globalive has reportedly made a  $3.75 billion cash offer for Freedom and Lacavera told the Post in March that his company was ideally positioned to bring more U.S.-style competition to Canada if it reacquired Freedom.

On Monday, Lacavera emphasized that whether it is Globalive or another company that wins the bidding war, he hopes the government will ensure that the company is truly independent with a competitive track record that could help bolster Freedom Mobile as a fourth telecom carrier.

“The minister and the Prime Minister, and the Competition Bureau have an excellent opportunity … right now to enshrine the fourth carrier policy, and ensure we have a vigorous, effective competitor for the benefit of Canadians,” Lacavera said. “It’s right in front of them. Definitely Globalive is an alternative, but we’re just one alternative: there’s a handful that would be suitable and the government should ensure that all of those bids are properly, seriously considered — not a sham, non-competitive process.”

Article content

These remarks followed reports that rural internet provider Xplornet Communications Inc. and the Aquilini family (which also owns the NHL’s Vancouver Canucks) were potential suitors for Freedom Mobile.

Last week, Rogers said it remains on track to close the $26-billion acquisition of Shaw by the end of June.

The Canadian Radio-television and Telecommunications Commission approved the transfer of Shaw’s broadcasting assets to Rogers in March.

“This approval is an important milestone and brings us one step closer to completing our transformational transaction, which we expect to close in Q2 (the second quarter),” Rogers chief executive Tony Staffieri said.

He added that teams from Rogers and Shaw are working “constructively” with the Competition Bureau and ISED Canada “to ensure they have the information they need to assess the significant benefits the combined company will bring to Canadians and the Canadian economy.”

— With additional reporting from Financial Post

• Email: [email protected] | Twitter: StephHughes95