Cogeco Says Rogers and Altice Engaged in “Bad Faith Tactics” with Acquisition Proposal

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Cogeco sent a letter to Rogers and Altice USA indicating that the companies engaged in “bad faith tactics” with the announcement of their acquisition proposal.The carrier shared the letter publicly in a press release and notes that it sent it to the companies in response to a letter from Rogers saying Cogeco rejected the offer without “undertaking an appropriate process.”

Cogeco says Rogers and Altice made the announcement minutes before the stock market opened without any warning and did not mention that the Audet family, its main stakeholder, rejected the proposal the day before.

“From the outset, you engaged in bad faith tactics, some of which confused the market,” the letter read. “We can only assume that this was done in an attempt to mislead investors and increase the share price in order to pressure the family to sell.”

In Rogers’ letter, the carrier said that “Cogeco’s boards of directors and their independent directors have failed to fulfill their most basic obligations in representing the shareholders they are required to represent and protect.”

Cogeco responded to this assertion in its letter and said it is “fully satisfied that its process for responding to the proposal was appropriate and that it has given the matter ‘the care and attention it deserves”.

He also emphasizes that he will not engage in a futile exercise to distract management and key resources from our business operations while creating friction among our stakeholders.

The carrier says it will “focus on what matters,” which implements its growth strategy and invests in its North American broadband and media platforms.

Rogers and Altice have acknowledged receipt of the letter and say they are still determined to proceed with the transaction.

“We remain committed to continuing this transaction and are open to engaging with shareholders and boards in a constructive manner,” the companies said in a joint statement to MobileSyrup.

Update 9/16/20 5:30 p.m. ET: The article has been updated with a statement from Rogers and Altice USA.

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