Oct 22 Reuters - The boardroom tussle at Shaw Communications Inc, in which the ousted Chairman is trying to regain control, was unlikely to hinder the telecoms company's $16.2 billion buy of Rogers Communications Inc, analysts said.
The board voted out Chairman Edward Rogers on Thursday, but hours later he returned with plans to remove directors who acted against him.
Rogers' exit capped a turbulent period, during which he tried to replace Chief Executive Joe Natale, a move in late September that put him at odds with his sisters and mother, who backed the CEO on the board.
J.P. Morgan analysts said they hoped the boardroom battle would not overshadow the timeline or approval process of the deal to buy smaller rival Shaw.
We maintain our base case that Rogers will be able to close its transformative acquisition of Shaw in 1 H 22 following the divestiture of some or all of Shaw's wireless business, J.P. Morgan wrote in a note to investors.
While the company's bid for Shaw would further boost its position in Canada's highly concentrated telecoms market, it has attracted scrutiny from multiple government regulators over whether it will reduce competition.
Scotiabank analysts said they expect the deal to get regulatory approvals within the planned timeline of the first half of next year.