Rogers and Shaw Take Another Attempt at Mediation Before Competition Tribunal Hearings

Rogers, Shaw, and Quebecor will take another shot at mediation in hopes of reaching an agreement with the Competition Bureau for approval of Rogers’ acquisition of Shaw, with Shaw’s Freedom Mobile wireless business going to Quebecor. We don’t have high hopes that mediation will result in a resolution, but Shaw and Rogers have both delayed the timing of their typical October earnings reports, which we see as a sign they hold out some hope mediation will be successful. There’s no change to our view that approval is ultimately more likely than not, and we are maintaining our fair value estimates of CAD 38 for Shaw, CAD 70 for Rogers, and CAD 35 for Quebecor.