Canadian auction eclipses $4 billion
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We’ve been off the path of the Canadian auction lately, so let’s get with a little update. At the end of last week, the bidding hit $4.1 billion, with Rogers leading the way. The nation’s only GSM carrier has bid close to a billion itself, sitting at $946.1 million over 57 licenses. Analysts originally predicted that the auction would raise about $2 billion, and that plenty would be left on the table because of the restrictions giving 40 percent of the spectrum to new entrants. With the bidding about double original estimates, one has to wonder where those analysts are now.
On the new entrants side, Quebecor Inc. is taking the reins, bidding $565.1 million over 18 licenses. They’re mainly bidding in Ontario and Quebec, where they run the Videotron cable service.
Globalive has the high bid on 26 licenses for $433.1 million, though they are under fire from Shaw, because of the Globalive’s foreign ties. Shaw themselves have 25 high bids for $208.7 million.
“It is interesting to see a process so clearly driven by foreign money,” CEO Jim Shaw said Friday during a conference call to discuss the cable company’s third-quarter results.
“We just hope that when the auction’s over and the bidders are qualified, that they all can recite the words to the Canadian national anthem,” Shaw said.
On the major players side, Telus has the high bid on 53 licenses for $800.4 million, while Bell lags behind the pack with $695 million over 53 licenses.
The auction will not close until the bidding ceases. Given how this auction has developed, that might not be any time soon.
(And you watch. It will end this week just because I said that.)
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