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AT&T Canada, Metronet link
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March 4, 1999: 8:21 a.m. ET
C$7B transaction creates Canadian telecommunications giant
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NEW YORK (CNNfn) - AT&T Canada Corp. and MetroNet Communications Corp. said Thursday they will merge in a C$7 billion deal.
Under the agreement, all of MetroNet's assets and operations will be combined with AT&T's 30 percent voting interest in its Canadian subsidiary, 100 percent interest in ACC TelEnterprises Ltd., and 67 percent interest in the former AT&T Canada Long-Distance currently held in trust.
AT&T also has agreed to purchase or arrange for another entity to buy the remaining MetroNet shares for at least C$75 apiece.
On completion of the deal, AT&T will own 31 percent of the merged company and 23 percent of the Class A voting shares of MetroNet, which were bought from Providence Equity Partners, one of the company's major investors.
MetroNet shareholders will own about 69 percent of the newly merged company's stock.
The newly company, which will be called AT&T Canada and use the AT&T trademark, is expected to have annual revenue of about C$1.4 billion, more than 4,000 employees and about C$3.5 billion in assets.
MetroNet has agreed to pay a break-up fee of $75 million if the transaction isn't completed under certain conditions.
The deal has been approved by the boards of both companies. 
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AT&T Canada
MetroNet
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