Wind might be getting shut down now as a court deemed they are not Canadian enough
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Feb. 4 (Bloomberg) -- Rogers Communications Inc. and BCE Inc., Canada's largest phone companies, climbed after rival Globalive Communications Corp. said a Canadian court overruled the government's 2009 decision to grant it a wireless license.
Globalive is "very disappointed with this decision," the Toronto-based company said in a statement today. "From the beginning, we have maintained that we are fully compliant with the rules."
Globalive, backed by Egyptian billionaire Naguib Sawiris' Orascom Telecom Holding SAE, was deemed not to meet Canada's foreign ownership rules by the country's telecommunications regulator in October 2009. That decision was reversed weeks later by Industry Minister Tony Clement, paving the way for the company to sell mobile phones to Canadians in December 2009.
Canada's Federal Court ruled today that the government's order to overturn the regulator contained two errors and should be quashed, Globalive said in its statement. The ruling will take effect in 45 days, the company said.
Clement said his government is considering appealing today's ruling.
"We are carefully studying the decision and considering the options, including a possible appeal," Clement said in a posting on Twitter that was confirmed by his office.
"This seems to be a very big deal, and potentially quite positive for the incumbents," Jonathan Allen, an analyst at RBC Capital Markets in Toronto, said today in a note. He has an "outperform" rating on BCE and "sector perform" rating on Rogers.
Shares Rise
Rogers climbed 2.1 percent to C$35.82 at 4:15 p.m. in Toronto Stock Exchange trading. BCE climbed 1 cent to C$36.45, reversing an earlier decline.
Globalive said it is examining its options and doesn't "intend to back down," Globalive Chief Executive Officer Anthony Lacavera said in the statement.
BCE is reviewing the decision and doesn't have any immediate comment, said Mark Langton, a spokesman for the Montreal-based company. Jan Innes, a Rogers spokeswoman, declined to comment.
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