BT, AT&T go globetrotting again: Companies acquire 33% of Canada's Rogers Cantel

Just four months after the strategic couple of BT and AT&T went global with an investment in Japan Telecom, the duo crossed the Canadian border by investing in Rogers Cantel Mobile.

Last week, the two companies announced that together they would acquire a 33% equity stake in Canada's mobile giant for a total of about $934 million in cash.

"Although it is nice to be north of the border, this is not about borders but about partnerships," said John Zeglis, president of AT&T.

The ownership position will be held through a newly established entity, Wireless Co., which is jointly owned by AT&T and BT. Such a partnership not only gives Rogers nearly $1 billion, but also gives BT 30% ownership of AT&T's 31% equity position in AT&T Canada, totaling about $402 million.

In addition, Rogers Cantel and AT&T Canada plan to accelerate the bundling and joint marketing of wireline and wireless services for Canadian business customers, which is expected to be completed next year. "Now Rogers will be stronger on the communication front," said Ted Rogers, president and CEO of Rogers Communications Inc.

This transaction represents the second joint initiative since BT and AT&T announced their proposed $10 billion global venture last year. Further developments lie ahead, said Alfred Mockett, president and CEO of BT. "We will continue to strengthen our relationship with AT&T. This [investment] is a significant addition to our global family," he said.