Read in the Financial Post on Saturday that BCE has sold a majority stake in CGI computers and several analysts mentioned that they might now make a play for Shaw Communications. Part of the reasoning was to merge SC and Evu - I for one hope it never happens. I just bought my Sc equipment this year and one of the major reasons I went with them is channel substitution - it rarely happens in my area because they can do it by PC.

Any opinions?

:D

BCE will raise 1.1 Billion from the sale of CGI and they will also make a pot of cash from selling the bulk of their stake in BGM.

Shaw has been buying up their stock, presumably so they can make big dollars on selling out.

I for one think that Bell wants to beef up in the west since all they've got is Bell Mobility out there.

Strategically, it makes a lot of sense to buy Shaw Cable. The competition board would probably make them divest SC but who would want to buy it?

Other potential suitors for Shaw might be Videotron or Rogers although I doubt Rogers could scrape together the cash since their debt to equity ratio is pretty high right now!

Lots of U.S. companies would love to make a play but, the federal government would never allow it

I wouldn't rule out Telus either.

Strategically, it makes a lot of sense to buy Shaw Cable. The competition board would probably make them divest SC but who would want to buy it?

Expressvu does not fit into BCE's long term plans. The "1 wire" solution is the only way for Telcos to compete against cable companies.

They have been trying to unload Expressvu for a while - no buyers - it is unprofitable, has an ongoing security problem and position of 3rd and 4th DBS slots makes future expansion costly and more suseptible to rainfade than competitors. In addition the shutdown of either SC or Expressvu turns BCE owned Telesat into an unprofitable company - especially since Industry Canada has sent clear signals that Telesat will not get the remaining C/ku slot at 109.2.

Look for BCE to stay in their core business for future expansion - 100% ownership of either Manitoba Tel or Aliant.

Expressvu does not fit into BCE's long term plans.

There certainly was talk of it several years ago as Sabia was shopping a lot of assets around but I hadn't read it recently.

What I read after the BGM sale led me to believe otherwise. In responding to the BGM sale, Michael Sabia, President and Chief Executive Officer of BCE said "BCE sees its participation in Bell Globemedia as a significant opportunity for our company, particularly as we leverage our continued access to Bell Globemedia's content for our growth platforms - wireless, Internet and television."

In my mind the implication was they wanted out of content but definitely stay in television.

So I'm curious, where did you hear or read that? (recently that is)

From CBC on Friday:
As for BCE's next move, there have been rumours it will bid to acquire Calgary-based cable TV operator Shaw Communications Inc. (TSX:SJR.NV.B), which has a stock market value of over $5 billion plus $2.7 billion in debt.

Further speculation suggests BCE might make a move on Manitoba Telecom Services Inc. (TSX:MBT), or buy the 47 per cent it does not already own of Atlantic-region phone company Aliant Inc. (TSX:AIT).

Other options would be to pay down BCE's $12.6 billion in long-term debt, buy back its own shares (TSX:BCE) to prop up its underperforming stock price, or raise its already attractive dividend.

Shaw would be the most likely acquisition target, said Paul Holman, an analyst at Dominion Bond Rating Service.

A combination of Bell and Shaw would have benefits for both enterprises, Holman said, but "it's strictly speculation on the Street - the company has done nothing to warrant that speculation."
http://www.cbc.ca/cp/business/051216/b121680.html

I wouldn't rule out Telus either.

I think Telus would have a hard time with the competition board since, if the bought Shaw, they would then have cable and telephone in the West.

Stanger things have happened Hugh. Telus does not have a large presence in Saskatchewan and Manitoba. Buying Star Choice alone or even Shaw would give them access to their TV and internet customer base as well as keeping out certain competitors (like Bell). They could always divest assets in certain markets.

Stanger things have happened Hugh.

Agreed.

i don't think telus has the cash to buy shaw...
BCE would do well to get shaw for the western presence.. they have a pretty small presence right now with just mobility... and bellwest..