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Pierre Blouin, chief executive officer of MTS Allstream and Manitoba Telecom Services Inc.
Pierre Blouin, chief executive officer of MTS Allstream and Manitoba Telecom Services Inc.
(John Woods for the Globe and Mail)

MTS Allstream weighs share sale to relieve pension pressure

Burdened by a big pension deficit at MTS Allstream, parent company Manitoba Telecom Services Inc. is considering issuing new shares to help close the gap.

After the federal government blocked Allstream’s sale to Accelero, the company can no longer rely on using $170-million of the proceeds to help plug its pension hole. And even though Allstream is being integrated back into Manitoba Telecom Services, management knows that its solvency problem will not magically disappear.