GATINEAU, Quebec (Reuters) - Canada's broadcast regulator blocked BCE the company's C $ 3 billion ($ 3.05 billion) acquisition of the interstellar medium on Thursday, announced that the transaction will be too much power to the BCE, already the country 's largest telecommunications company, and has a number of television and radio assets.
BCE failed to convince us that the deal will benefit Canada, "Jean - Pierre Bligh, said, who took over as Chairman of the Canadian Radio-television and Telecommunications Commission (CRTC) 4 months ago.
This is the biggest deal the Commission had to stop and leading industry experts said, which marks a turning stand up for consumers.
Michael Geist, University of Ottawa, said: "Four months, Bly has changed the CRTC into an environment conducive to consumer advocates, to create what the regulatory agencies, the change is expected until recently was unthinkable. has been a long time. "
BCE criticized the decision and said it would require the federal government to intervene and broadcasting regulatory authority to give directions to overthrow the ruling.
However, Canadian Heritage Minister James - Moore (James Moore) spokesman said that the Commission's ruling will stand.
"The Cabinet can not overturn this decision," he said in an e-mail. "CRTC held public hearings, and to give its decision on the matter, the decision of the CRTC independent Canadian government."
Quebec media companies worry about the BCE acquisition of Quebec star - with professional TV channels and radio stations and programming company, the company's decision is good news - will challenge its dominance of the French language content.
The ruling is also conducive to the BCE competitors, including English, said that BCE has been abuse of power for the integrated broadcasters and distributors Rogers Communications Company. Rogers called the "brave" Commission ruling.
"CRTC steel in its spine, said:" Ian Grant, telecommunications consulting firm Coast Group Managing Director. "I just think this whole thing is unpleasant."
CRTC decision, you can appeal to the Federal Court of Appeal, but can not overturn the Federal Cabinet.
Quebec, a splinter group of the opposition New Democratic Party, welcome Bligh's decision.
Large setbacks
BCE Bell, the media arm, countered that the Commission ignored its own rules and guidelines, such transactions and complain about what it says is a behind-the-scenes lobbying Bell's cable rivals.
"Canada broadcasting requires significant new investment, new ideas and more choices cable company advantages in the media and accelerated competition from foreign giants who invest in small time in the Canadian broadcasting system," said Mirko · Bibic, Bell's chief legal and regulatory officials.
The appeal by BCE broadcast regulator's decision, even though it was successful, but the deal also need to win the antitrust agencies from Canada, the Competition Bureau has not yet issued a ruling deal nodded.
Refuse to be set to trigger star shares last Friday's sell-off. The company's Class A shares closed lower by 3%, plus $ 47 day (Thursday), some investors sold out in advance Ruling Council to veto the transaction concerns.
BCE interstellar shareholders $ 50 per share, a premium of nearly 40% of the stock's closing day before the deal was announced.
UBS (UBS) analyst Philip Huang warned that the ruling may hurt BCE stock has risen about 9% since the deal was announced on March 16.
"We believe that the failure of the deal may cause some people to question the potential impact of the increase and flexible funding of the BCE future dividends to increase capital spending accelerated growth," Huang said in a note to clients.
Quebec, Rogers and other competitors, said the transaction will allow BCE to lock the program, its huge media platform, the company will be given the weight of too much capacity and pricing in the market.
They launched a strong campaign, advertising on TV commercials and full-page newspaper features for this transaction, and held a news conference to introduce their concerns.
They worried that the deal to BCE's content will extract a high price, and warned that this would lead to higher prices for consumers.
The Commission concluded that the BCE-interplanetary English TV, after the merger would control the unprecedented amount of revenue and viewing options.
The regulator has a the policy quickly approved the transaction, under the control of the company's overall TV viewership share of 35%, 35% to 45% market share and double-check transactions.
Its conclusion, the French side of the acquisition of BCE 33.1% of the viewership of television services in Canada and 42.7% of the English side.
BCE think, to watch the United States and other non-Canadian services should be included in the calculation, cutting its share to 24.4% French and 33.5% - 35% of the alert level - but the CRTC rejected this formula.



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