Oct 7 The Canadian government has blocked a bid
from a company controlled by Egyptian telecom tycoon Naguib
Sawiris to buy a national fiber optic network, citing national
Manitoba Telecom Services Inc (MTS) had announced
in May it would sell its Allstream fiber optic network for C$520
million to Accelero Capital Holdings, which is controlled by the
Egyptian telecom magnate.
But MTS said late on Monday the federal government blocked
the deal, citing "unspecified national security concerns."
The government also rejected MTS and Accelero's offer to
take necessary actions to address those concerns, the company
said in a statement on Monday.
Canadian Industry Minister James Moore confirmed the
decision in a brief statement.
"The Government of Canada has concluded its review of
Accelero Capital Holdings' proposed acquisition of the Allstream
division of Manitoba Telecom Services Inc. (MTS) under the
national security provisions of the Investment Canada Act. The
result of this review is that the transaction will not proceed,"
the statement said.
The statement noted that MTS Allstream operates a national
fiber optic network that provides critical telecommunications
services to businesses and governments, including the Canadian