June 27, 2002 — (WEB HOST INDUSTRY REVIEW) — Broadband business services provider AT&T Canada Inc. (ATTCanada.com) announced this week that AT&T Corp. has formally initiated the process of purchasing all the outstanding publicly held shares of AT&T Canada Inc. that it does not already own, in accordance with the terms of the Deposit Receipt agreement entered into when AT&T Canada was created in June of 1999.
AT&T Corp. designated two subsidiaries of Canadian Imperial Bank of Commerce (CIBC) to purchase the shares. The purchase by the subsidiaries is subject to certain conditions, including CIBC selling the subsidiaries to other Canadian investors by August 15, 2002, or AT&T Corp. will designate a different purchaser.
According to AT&T Canada, AT&T Corp. plans to fund the purchase in cash, currently estimated to aggregate approximately $3.4 billion US, and will retain its approximately 31 percent economic interest in AT&T Canada.
