Telus has abandoned its offer to acquire Mobilicity, after the Canadian government signaled it would block the transfer of Mobilicity's licences to the larger mobile operator. Data & Audio-Visual Enterprises, the holding company for Mobilicity, announced that Telus had exercised its option to terminate the acquisition plan. Mobilicity will now pursue its previously announced recapitalization plan, which will be voted on by debtholders at a meeting on 25 June.
The takeover for CAD 380 million was first announced in mid-May and had already received court approval. In early June, the government said it would not allow one of the new entrants on the market after the spectrum auction in 2008 to be swallowed up by a larger incumbent.
