Rogers Communications Inc. says it will spend $3 billion in Quebec over the next five years if it emerges victorious in its bid for the Canadian assets of Cogeco Inc., but the Montreal-based cable company and takeover target remains unswayed.
Toronto-based Rogers and U.S. cable operator Altice USA Inc. announced earlier this month that the latter was willing to pay $10.3 billion for Cogeco and its subsidiary, Cogeco Communications Inc. As part of the deal, Altice would then flip Cogeco’s Canadian assets to Rogers for $3.4 billion.
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However, the offer was quickly rejected by Cogeco’s board and its controlling shareholders, the Quebec-based Audet family. Some hard feelings have since emerged, as both sides of the transaction have sent a letter accusing the other of various failings in their dealings.
Rogers now says the acquisition would come with more than just cash for Cogeco shareholders, as the telecom giant is proposing to spend a total of $3 billion in Quebec over the next five years, including $1.5 billion in network investments. Also included is a commitment to keep 5,000 jobs in Quebec for the combined company (Rogers currently says it has 3,000 Quebec employees) and a vow to keep Cogeco’s headquarters in Montreal.?