Manitoba

MTS shares down nearly 10% after Allstream deal rejected

Shares of Manitoba Telecom Services (TSX:MBT) have fallen more than seven per cent after Ottawa rejected the sale of its Allstream business to an Egyptian investment group.

Manitoba Telecom shares down nearly 10 per cent after Allstream deal rejected

Manitoba Telecom Services have seen shares dip 10 per cent after a deal to sell the company was rejected.

Shares of Manitoba Telecom Services (TSX:MBT) have fallen more than seven per cent after Ottawa rejected the sale of its Allstream business to an Egyptian investment group.

The stock was down $2.43, or 7.51 per cent, at $29.93 in morning trading on the Toronto Stock Exchange.

Industry Minister James Moore rejected the deal Monday under the national security provisions of the Investment Canada Act.

Manitoba Telecom had signed an agreement to sell the business to Accelero Capital Holdings in a deal that valued the operations at $520 million.

Allstream, created after AT&T Canada restructured, offers telecommunications services mainly geared to large corporations and institutions.