TELUS in discussions to acquire BCE



    VANCOUVER, June 21 /CNW/ - TELUS today confirmed it has entered into a
mutual non-disclosure and standstill agreement and is pursuing non-exclusive
discussions with BCE about a possible business combination as part of the
strategic review process announced by BCE on April 17, 2007.
    "TELUS believes the combination of the two businesses would represent a
compelling strategic and financial opportunity for all BCE and TELUS
stakeholders. It would be an all Canadian solution for both immediate and
long-term value creation, whilst ensuring a vibrant player continues in this
increasingly competitive industry," said Darren Entwistle, President and CEO,
TELUS. "TELUS has a unique opportunity to create a truly national Canadian
enterprise with the requisite balance sheet strength as well as scale and
scope to continue TELUS' development as a global leader in the deployment of
state of the art technology and innovative new services for customers."

    
    A combined TELUS/BCE could:

    -   Create a combined organization poised for improved growth and returns
        through the realization of significant operating synergies to the
        ongoing benefit of TELUS and BCE investors
    -   Retain investment grade credit ratings thereby retaining financial
        strength to invest in long-term growth with the associated public
        benefits related to innovation and productivity
    -   Preserve and enhance a public Canadian investment vehicle for
        ordinary Canadians and institutional investors
    -   Ensure access to leading edge technology, services and devices for
        the benefit of Canadian consumers and the competitiveness of
        businesses
    -   Allow current BCE shareholders to participate in ongoing value
        creation on a largely tax deferred rollover basis which would be
        attractive to the many BCE shareholders with a low tax cost basis
    -   Preserve an income tax base for Canadian governments that would
        otherwise be eliminated by highly levered private equity structures
        with non-taxable equity holders and U.S. sourced debt
    -   Be the most likely strategic alternative to preserve long-term
        Canadian control if foreign ownership restrictions are removed
    -   Establish a truly national telecommunications company, similar to
        other G8, European and Commonwealth countries (e.g. British Telecom,
        France Telecom, Deutsche Telekom, NTT, Telecom Italia) in an industry
        critical to national sovereignty
    -   Foster the continued evolution of security, health, and educational
        infrastructure of Canada
    

    Given the accelerated process that BCE has adopted, among other things,
there is no assurance that TELUS and BCE will continue discussions or enter
into any agreement to proceed with any transaction.

    About TELUS

    TELUS (TSX: T, T.A; NYSE:   TU) is a leading national telecommunications
company in Canada, with $8.8 billion of annual revenue and 10.8 million
customer connections including 5.1 million wireless subscribers, 4.5 million
wireline network access lines and 1.1 million Internet subscribers. TELUS
provides a wide range of communications products and services including data,
Internet protocol (IP), voice, entertainment and video. Committed to being
Canada's premier corporate citizen, we give where we live. Since 2000, TELUS
and our team members have contributed more than $91 million to charitable and
non-profit organizations and volunteered more than 1.7 million hours of
service to local communities. Eight TELUS Community Boards across Canada lead
our philanthropic initiatives. For more information about TELUS, please visit
telus.com.

    Forward Looking Statements

    This news release contains forward-looking statements about TELUS and the
combined company after completion of the transactions described herein that
are intended to be covered by the safe harbor for "forward-looking statements"
provided by the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in this news
release are forward-looking statements. Forward-looking statements may prove
to not be accurate and readers are cautioned to not place undue reliance on
them.
    Statements that address activities, events or developments that TELUS
expects, believes or anticipates will or may occur in the future are
forward-looking statements. These statements include but are not limited to
those regarding: completion of the proposed transaction; strategic and
financial opportunities; growth, returns, innovation and productivity;
operating synergies; expected tax consequences.
    All forward-looking statements are subject to inherent risks and
uncertainties, many of which are difficult to predict and are generally beyond
the control of TELUS, that could cause actual results to differ materially
from the future results expressed in or implied or projected by the
forward-looking statements. These risks and uncertainties include but are not
limited to the risk factors disclosed and identified in TELUS' public filings
made with securities regulatory authorities in Canada (on SEDAR at
www.sedar.com) and the Securities and Exchange Commission in the United States
(on EDGAR at www.sec.gov) and also include the following risks, uncertainties
and other possibilities:

    
    -   BCE and TELUS may not agree to proceed with any transaction
    -   approvals required to be obtained by TELUS and BCE from shareholders,
        regulatory and other agencies and bodies may not be obtained in a
        timely manner or at all
    -   anticipated benefits, synergies and cost savings from the business
        combination may not be fully realized
    -   costs or difficulties related to the integration of BCE's and TELUS'
        operations may be greater than expected
    -   delay in the completion of the steps required to be taken for the
        combination of the two companies may occur
    

    The forward-looking statements included in this news release represent
TELUS' views as of the date hereof. While TELUS anticipates that subsequent
events and developments may cause TELUS' views to change, TELUS specifically
disclaims any obligation to update any forward-looking statements contained in
this news release or any other forward-looking statement, whether written or
oral, that may be made from time to time by TELUS or on its behalf. The
forward-looking statements contained in this news release should not be relied
upon as representing TELUS' views as of any date other than the date hereof.





For further information:

For further information: For media inquiries: Shawn Hall, (604)
619-7913, shawn.hall@telus.com; Stacey Masson, (514) 977-8766,
stacey.masson@telus.com; For investor inquiries: John Wheeler, (604) 697-8154,
ir@telus.com

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TELUS Corporation

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