AT&T Canada has announced a name change to Allstream.
Long-distance carrier AT&T Canada, which emerged from bankruptcy protection in April, has announced a name change while dismissing speculation of a takeover bid.
Former parent AT&T Corp earlier announced that it wouldn’t take an equity stake in a recapitalized AT&T Canada, and cut its branding ties. The company, therefore, had little choice regarding a new identity. It is now to be called Allstream. The restructuring of AT&T Canada’s CAD4.5 billion ($3.32 billion) debt, which was completed in February, wiped out AT&T Corp’s 31% stake.
Starting on June 26, 2003, Allstream’s shares will trade under the symbols ALR.A and ALR.B on the Toronto Stock Exchange, and ALLSA and ALLSB on the Nasdaq National Market System.
John McLennan, Allstream’s CEO also took the opportunity to dismiss long-standing rumors that his company is in talks with Telus about a possible takeover. Speculation grew stronger last week when Telus filed a multi-billion-dollar prospectus for a potential issue of securities.
Right now we have not been approached with a takeover offer, Mr McLennan said. I would like to reiterate that we do not have an open file with them. Certainly we are not in discussions with any other telephone company at this time.
However, when asked if Allstream would be open to an offer, Mr McLennan said: We have to consider any and every opportunity that is presented to our company, and we would do that. But we would do it very much based on what is in the best interest of the shareholders of this company.
Allstream is focused on the business market. The majority of its revenue comes from selling voice, data and network management services to 4,000 large corporate customers across Canada.
While its major rivals are Bell Canada and Telus, one of the biggest threats to Allstream’s business could come from its former parent. AT&T’s Global Network Services business has recently tripled its sales force in Canada and could pose a significant threat.
Source: Computerwire/Datamonitor
