Merger talks between TELUS and Bell revived?

Rumours of a merger between TELUS and Bell are once again starting up as Bell’s privatization deal appears to be on its death bed. The $52 billion deal between Bell, the Ontario Teachers’ Pension Plan and U.S. private equity firms is in trouble as concerns mount that the new company would not survive in the current economic downturn.

A Scotia Capital analyst suggests instead that a merger between TELUS and Bell could once again be on the table. A similar deal had first surfaced in mid-2007 when BCE had been looking for buyers. Such a merger would give the combined company a market share of about 60 percent in the wireless space.

While neither company has commented on the rumours, sources at both companies have denied the rumours.

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