BCE and Telus Go On Sale
The share prices of the three main Canadian telecommunication companies came under pressure yesterday after Shaw Communications announced the acquisition of WIND Mobile for C$1.6 billion. This will effectively create a fourth major competitor in the Canadian mobile telecommunications market.
The announcement yesterday reduced the price of our Dividend Champion’s holdings, BCE (TSX: BCE, NYSE: BCE) and Telus (TSX: T, NYSE:TU), $2 a share and $3 a share respectively.
While we have reduced the fair value of both BCE and Telus as a result of the Shaw/WIND transaction, we believe this creates an excellent buying opportunity for both BCE and Telus.
Look out for full details in our Maple Leaf Memo next week.
Chief Investment Strategist