Globalive Communications Corp. plans to acquire cut-price phone services operator Telehop Communications Inc. in a $10.7-million friendly cash deal.
Telehop said Thursday it had signed an agreement with Globalive, which is offering up to 80 cents per Telehop share.
Telehop had announced a $10.7-million bid last month, without naming Globalive and said the offer came from an "arm's length strategic industry participant."
The company had also been evaluating an offer from Jaguar Financial Inc., which offered 50 cents per share for up to 67 million shares, or half the total outstanding. Jaguar already owns 17 per cent of Telehop.
Telehop provides discount long-distance access, directory assistance programs, toll-free numbers and cut-price home phone service.
Globalive, which is best known for selling Yak long-distance services, recently spent $442-million to bid on wireless licences across the country, except in Quebec.
Analysts have speculated that Globalive could team up with Quebecor Inc., which bid over $554-million for spectrum in the province, to establish a national wireless network to compete with established wireless telecom operators.