Rogers Wireless Communications – Canada’s leading provider of wireless voice communications services under the co-brand Rogers AT&T Wireless – saw its stock value tumble by over one-third after public shareholders rejected a buyout offer.
Parent Rogers Communications, the country’s largest cable-TV provider and 51% owner of RWC, had offered C$477 million (US$306m) for the publicly owned shares. It has announced the bid will not be increased, killing the transaction.
The offer had seen a rise in demand for the publicly traded shares, as speculators expected the deal to go through. However, its rejection led to a swift dumping of RWC stock, with shares falling from C$25.06 to C$16.65. Rogers stock also fell before recovering slightly.
News sources: Financial Times; Rogers Communications website