Shares in Canada’s big three telecom companies surged today on news that Verizon said it’s no longer (and never really was) interested in entering Canada’s wireless market.
Stock in Rogers soared the most in afternoon trading on the TSX and closed up 7.2%, or $3.00, to $44.59. Telus rose 6.7%, or $2.18, to $34.50 at the close, while Bell was up 3.9%, or $1.67, at $44.86.
You’ll see from the chart below that Rogers is now trading only $2 below it’s share price since rumours of Verizon coming north started circulating.
Part of the Big Three’s Fair for Canada argument was that Verizon’s potential entry into Canada was eroding Canadian pension plans as many include shares of the three telecommunications companies.
Robert Farmer, president of the Canadian Federation of Pensioners, which represents a quarter of a million retirees, even fired off a letter to Prime Minister Stephen Harper, warning that the failure of any of the big three Canadian telecommunications companies would bring “irreparable harm to all pensioners.”
Until today the trio had cumulative losses of almost $15 billion on the capital markets since news broke in June that Verizon was making an offer to purchase Wind Mobile.
Today Rogers, Telus, and Bell they made up a big portion of those losses.