Rogers Takeover of Shaw Meets Skepticism; Deal Spread Widens
- Shaw falls again as Rogers network outage boosts scrutiny
- Even so, analysts remain bullish that the deal will close
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Investors are casting more doubt over Rogers Communications Inc.’s proposed C$20 billion takeover of Shaw Communications Inc. as last week’s national network failure draws increasing scrutiny from Canada’s industry watchdogs.
The deal spread, the difference between Shaw’s stock price and the C$40.50 a share offer by Canada’s biggest cable and wireless firm, climbed to C$6.17 at the close on Wednesday, its widest point in a month. That’s down from less than C$3 at the start of July as investors price in further risk of the transaction collapsing in the wake of an outage that pushed millions of Rogers customers offline.