CA - Rogers/Shaw say deal mediation with regulator has failed

Rogers Communications ( NYSE: RCI ), Shaw Communications ( NYSE: SJR ) and Quebecor ( OTCPK:QBCAF ) have issued a statement saying mediation with Canada's Competition Bureau to settle Rogers' planned takeover of Shaw has failed .

"The mediation did not yield a negotiated settlement," the companies say. "We are disappointed with this outcome and believe that litigation is both unnecessary and harmful to competition. The Bureau's unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers."

"We remain committed to completing this pro-competitive series of transactions and are confident in the strength and merits of our case in front of the Competition Tribunal, including the many benefits of these transactions to Canadians," they say.

The companies planned to move forward to mediation set for Oct. 27-28 after failing to resolve differences with the regulator; The Competition Bureau requested a daylong mediation.

The deal has been approved by Shaw shareholders as well as the court and the Canadian Radio-television and Telecommunications Commission. The Competition Bureau, though, has sued to block the transaction.

In early September, Canada's Competition Committee said the planned sale of Shaw's Freedom Mobile to Quebecor subsidiary Vidéotron doesn't resolve antitrust concerns about the Rogers/Shaw deal .

And François-Philippe Champagne, Minister of Innovation, Science and Industry, laid out additional terms on the sale of Vidéotron he would require in order to approve the deal .

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