Selling Sask-Tel

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kumquat
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Selling Sask-Tel

Post by kumquat »

Don't know if it belongs here, but it will soon.

As a Sk resident, I might be happy with a sale depending on price. Unlike some, I think it might be OK.

How much is reasonable? Trust me, I have no clue.
I don't intend to offend anyone, that part is just a bonus.

Science flies men to the moon. Religion flies men into buildings.
Thegipper
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Re: Selling Sask-Tel

Post by Thegipper »

As a former resident I have an interest in this. 1. We are in the midst of a communications and tech revolution and SK Tel is a very small player. I would be concerned that the revolution make this entity obsolete . So there might be a strong argument to cash in while things are good. 2. It was fed government policy to get a fourth Canadian national carrier. Shaw would be a logical candidate. They have made some steps in that direction. The acquisition of Sk Tel would make a lot of sense if that was their strategy. 3. The public debt of the SK government is around 4 billion. A sale should be equal to the Manitoba Tel and if so could wipe out the provincial debt and save the interest payments.. 4. The provincial government would lose the earnings from SK Tel. On the other hand they would get corporate tax revenue from the new entity. 5 . I am sure the government would secure job and head office guarantees in such a transaction.
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ghariton
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Re: Selling Sask-Tel

Post by ghariton »

SaskTel used to be a client. (Indeed, on September 11, 2001, I was on a flight from Ottawa to Regina. We got as far as Toronto.)

If SaskTel were put up for sale, I doubt Shaw would be a serious bidder. They need all their money to expand their wireless facilities in Toronto, Montreal, and Vancouver, after their purchase of WIND. The other priority for Shaw should be to form alliances with Videotron and Eastlink. That would lead to a fourth national carrier and, in my opinion, might well be financially viable. But the corporate cultures are quite different.

Rogers has a national network and I doubt that they would be interested in Saskatchewan. That leaves TELUS and Bell as the leading candidates. Given the past record, I would bet on Bell being the most serious bidder. They are a big operation, and seem allergic to returning much money to shareholders, preferring a stable dividend policy and no buybacks, so they have a lot of cash looking for a home.

That said, I remember SaskTel as being well integrated into the big boys' networks. They license the technology and get help with network architecture. Plus they have lots of experience with the peculiar geography of Saskatchewan farms (farmhouses set well back from the road, and so costly to reach.) No need to hurry to change.

George.
The juice is worth the squeeze
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