- Cogeco's (CGO) Executive Chairman, Louis Audet, has steadfastly rejected the proposed takeover from Altice USA and Rogers Communications
- He reiterated that the shares, held under the Audet family's holding company Gestion Audem, are not for sale and that the family's position is non-negotiable
- The decision comes after a number of back-and-forth press releases as Altice and Rogers attempted to sway Cogeco's key figures towards a selling position
- As part of an overall C$10.3 billion deal with Altice USA, Rogers had proposed to acquire the Canadian assets of Cogeco Inc. and Cogeco Communications for a gross price of $5.5 billion
- Cogeco (CGO) is currently down 5.71 per cent and is trading at $87.31 per share
Cogeco's (CGO) Executive Chairman, Louis Audet, has steadfastly rejected the proposed takeover from Altice USA and Rogers Communications.
Rogers and NYSE-listed Altice USA submitted the offer last week, under which Altice outlined its intentions to acquire Quebec-based Cogeco for an all-cash consideration of C$10.3 billion.
Following the transaction, Rogers said it would then acquire Cogeco's Canadian assets for a gross price of $5.5 billion.
Gestion Audem, the Audet family's holding company which holds a 69 per cent interest in Cogeco Inc. and an 82.9 per cent stake in its subsidiary Cogeco Communications, said in a statement shortly after receiving the proposal that it would not support the offer.
This has now been reaffirmed by Louis in a separate statement released yesterday, which appears to put the matter to rest.
"As the designated representative of the Audet family, who holds controlling shares of Cogeco Inc. and, indirectly, Cogeco Communications Inc., I want to provide absolute clarity for stakeholders regarding our intentions in response to the recent unsolicited proposal to acquire Cogeco.
"Our shares are not for sale. And let me be clear, our refusal is not a negotiating position, it is definitive," he said.
The back-and-forth communication between Cogeco, Altice and Rogers also prompted a response from Quebec's Premier, François Legault, who said in an interview with Quebec City radio station FM93 (CJMF) that it was out of the question to let Cogeco's head office move to Ontario.
This isn't the first time Rogers had made a failed attempt to gain traction in the Quebec market. In 2000, the telecommunication giant's bid to acquire Videotron was surpassed by Montreal-based Quebecor.
Cogeco (CGO) is currently down 5.71 per cent and is trading at $87.31 per share at 12:56pm EDT.