TORONTO and MONTREAL, April 24 /CNW/ - Look Communications Inc. (TSX
Venture: LOK and LOK.A) announced today that it has discontinued its strategic
review and maximization of shareholder value process.
This process which started in late 2006 was commenced in an environment
which is entirely different to the Canadian information, communication and
entertainment environment that exists today. The Canadian landscape has
changed dramatically with the following being just some of the events that
1. BCE Inc's selling down its interest in Bell Globemedia Inc. to a
group of investors including the Woodbridge Company Limited, Ontario
Teachers' Pension Plan and Torstar Corporation for $1.3 billion;
2. Bell Globemedia Inc's acquisition of Chum Ltd for $1.7 billion;
3. Astral Media Inc's purchase of Standard Radio Inc. for $1.08 billion;
4. BCE Inc's sale of Telesat Canada for $3.42 billion;
5. Rogers Media Inc's purchase of Chum Ltd broadcasting assets from
CTVglobemedia Inc. for $137 million;
6. The February Consultation Paper issued by Industry Canada for the
auction of 90 MHz of AWS Spectrum as well as other small segments of
spectrum and the expected auction of that spectrum in the first part
of 2008, a little over a year after the USA FCC Auctioned the
identical spectrum to some 168 bidders in the USA. This process will
result in discussions and comments on issues such as spectrum caps,
infrastructure sharing, mandatory roaming and the definition of
Affiliates and the bidding process relating thereto; and
7. BCE Inc's announcement that it has entered into discussions with a
group of leading Canadian pension funds to explore the possibility of
taking the publicly traded company private.
In addition to the above industry changes, specific events with respect to
Look Communications Inc. ("Look"), and its parent company Unique Broadband
Systems, Inc. ("UBS") have also occurred. These include, amongst other things:
1. The abrupt termination of discussions by "Interested Parties" in the
shareholder maximization process;
2. The April actions of Bell Canada and Rogers described in the
Company's press release on April 12, 2007;
3. UBS' instructions to its counsel to bring a motion to amend the UBS
statement of claim against Microcell et al to now include the
Inukshuk Wireless Partnership (owned directly or indirectly 50% by
Rogers and 50% by Bell Canada); and
4. The expected statement of claim by Look against Bell Canada that has
resulted from Bell Canada's April 10, 2007 "Notice of Intent to
Disconnect" services reported in the Company's press release on
April 12, 2007.
Look believes it is inappropriate and unproductive to continue the formal
shareholder maximization process and accordingly has decided to discontinue at
this time the formal process with "Interested Parties". Look may continue
informal discussions should it be appropriate to do so.
Look believes its spectrum and broadcast license continue to increase in
value as the Canadian mobile service market shrinks with the consolidation of
mobile service providers, the potential for mandatory sharing of networks and
infrastructure and the potential for mandatory roaming required with the
existing mobile service industry. If the upcoming Canadian AWS auction is
appropriately designed, Canada could potentially have additional regional
and/or national service providers, offering additional services such as video,
location based services and unlimited usage with flat rate pricing.
With the rapidly evolving Canadian mobile landscape, Look remains well
positioned by having approximately 100 MHz of spectrum and the only mobile
broadcast license in Canada. Look believes that consumers will only see world
class services and lower consumer prices when foreign investment and ownership
is permitted in Canada.
Look remains committed to maximizing shareholder value and Look's
approximately 100MHz of licensed spectrum in the 2.5GHz band together with its
mobile broadcast license, remain scarce and unparalleled assets that position
Look exceptionally well to capitalize on this growing trend towards mobile
information, communication and entertainment.
About Look Communications Inc.
Look's mission is to be an M(3) - Mobile Multi Media - entertainment and
information service provider in Ontario and Québec. The Company is developing
an M(3) network and currently delivers a full range of communications
services, including high-speed and dial-up Internet access, Web applications,
digital television distribution, and superior customer service to both the
business and residential markets. Look's shares are listed on the TSX Venture
Exchange under the symbols "LOK" for Multiple Voting Shares and "LOK.A" for
Subordinate Voting Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release contains
forward-looking statements regarding future events and the future performance
of Look that involve risks and uncertainties that could cause actual results
to differ materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved may vary from the information
provided herein and the variations may be material. Consequently, there is no
representation by Look that actual results achieved will be the same in whole
or in part as those forecasts.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Readers of this press release are referred to Look's joint press release
of April 12, 2007, reporting that Rogers and Bell Canada are trying to apply
pressure to Look and UBS.
For further information:
For further information: Peter Block, Investor and Media Relations,
firstname.lastname@example.org, (403) 531-0331, (416) 586-0180