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A Telus store in Toronto on June 3, 2012.
A Telus store in Toronto on June 3, 2012.
(Michelle Siu For The Globe and Mail)

For Telus, Mobilicity deal is a free option

Telus Corp.’s deal for Mobilicity is a free option on a small but valuable chunk of Canada’s airwaves.

Key among the deal’s terms is the lack of a break fee in the $380-million acquisition transaction. Often in a deal with significant risk of failure, there is a fee payable from one side to the other if the deal is blocked to compensate for the loss of the transaction. However, even though there is a solid chance the government blocks this deal, there is no payment.