TORONTO—Microcell Telecommunications plans to raise C$250 million (US$150 million) of its C$350 million (US$220 million) in financing needs through an equity offering. But Deutsche Telecom, a 15-percent owner of Microcell, is noticeably absent as a participant in the C$250 million offering. Microcell, which owns Canada’s Fido cell-phone service, still hopes to get Deutsche Telecom on board as an investor in the new shares.
For the third quarter ended 30 September, the carrier reported a loss of C$120 million (US$75.3 million). Third-quarter revenue rose to C$154 million (US$96.7 million) from C$113 million (US$71 million) in the year-earlier quarter. The company also reported for the first time in its history positive earnings before interest, taxes, depreciation and amortization (EBITDA) of C$5.4 million (US$3.4 million) in the third quarter.
However, it is still a financially difficult time. In October, Microcell announced it was beset by a funding shortfall of C$400 million (US$251 million). Its shares have plunged from a January 2000 peak of more than C$77 (US$48) to the current C$3 (US$1.88) level.
