“Globalive Communications Corp., a two-year-old Canadian wireless carrier, is in talks to buy Mobilicity, adding a competitor to take on larger rivals BCE Inc. (BCE) and Rogers Communications Inc., according to a person familiar with the discussions.”
“Canadian telecom upstart Globalive wants to buy rival Mobilicity but no deal is imminent or indeed likely until the government clarifies rules on foreign ownership and airwave allocation, according to a source with knowledge of the situation.”
“Wireless newcomer Mobilicity is planning to launch an initial public offering early in the new year with the goal of raising up to $100-million.
Sources say the company plans to go public as early as the first quarter of 2012, provided that equity markets are less volatile. A number of IPOs have been ready to launch since late summer, but they were put on hold because markets were too choppy as the European debt crisis unfolded. [...]
Stewart Lyons, president and chief operating officer of Mobilicity, declined comment on Tuesday, saying the company does not comment on rumour or speculation. “It is business as usual,” he said.
However, sources say the coming IPO is being pegged at roughly $15 to $20 per share with an eye to raising $50-million to $100-million. Mobilicity, legally known as DAVE Wireless, already has a group of about five or six investment banks in place for the IPO, with Toronto-Dominion Bank serving as one of the lead institutions. [...]
Globalive chairman Anthony Lacavera, who is also chief executive officer of Wind Mobile, declined to comment on the merger speculation. Still, he suggested industry consolidation is inevitable. “New entrant consolidation must happen,” he said.
Mr. Lacavera also argued that Ottawa must set aside wireless licences for new entrants in the 2012 spectrum auction to ensure that young players can survive. “There will be no new entrants in two to three years without a ‘set-aside’ [of licences in the highly valuable 700-megahertz frequency],” he said.
Without access to that key wireless spectrum, new players will not be able to offer what’s known as LTE (long-term evolution) to enable faster connection speeds for mobile devices, including smartphones and tablet computers. LTE, for example, is essential to ensure reliable delivery of high-quality mobile video.”