Look Feeling the Pressure

[cablewithaview]

Look Communications and Unique Broadband Systems say that Rogers and Bell continue to ‘apply pressure’ in an on-going dispute over current, potential and contracted telecom service offerings in Canada.

Look and UBS say that two companies, partners of Inukshuk Wireless Partnership LLP ("Inukshuk Wireless") – Rogers Inukshuk Telecommunications Inc., a subsidiary of Rogers Communications Inc ("Rogers") and NR Communications Limited, a subsidiary of BCE ("Bell") – are using legal and or contractual means to keep pressure on Look and its parent company UBS.

Look reports that on Monday, April 9th, 2007, it was informed that Rogers' legal counsel had written to the Ontario Securities Commission to say that the comments related to the UBS litigation of Inukshuk Internet Inc., made by Look and UBS at their Annual Meetings of Shareholders, should among other things, have been "tempered with cautionary language".

One day later, Bell Canada sent Look a Notice of Intent to Disconnect services effective 30 days from the date of notice. These two events, on consecutive days, continue to position Rogers, Bell and Inukshuk Wireless against Look and UBS, the companies say.

Look is the only company in Canada with approximately 100 MHz of spectrum
and a broadcast license for mobile video services in Canada.

Look hired investment bankers, Greenhill & Co, in late 2006 to review strategic alternatives to maximize shareholder value. Over the past few months, Greenhill has held talks with Interested Parties in pursuit of this process. In an about-turn, some of these discussions stopped abruptly and were followed by these two events on consecutive days.

Look and UBS believe Rogers' complaint to the OSC is poorly conceived, erroneously based and without merit. Look and UBS say they will both deal with the OSC on that basis.

Look says it will challenge Bell Canada's attempt to disconnect services. Look has also retained McMillan Binch Mendelsohn LLP to prepare a Statement of Claim against Bell Canada that goes back many years to the time when Bell was the principal shareholder of Look.

The Management of Look and UBS believe that the recent events result from:

1) UBS' legal action calling for, among other things, specific performance with respect to a contract between UBS Wireless
Services Inc. and Inukshuk Internet Inc., signed on January 16th, 2003; and

2) the recent review of strategic alternatives to maximize shareholder value.

UBS is a publicly listed Canadian company that has a 51.5% fully diluted economic interest in Look Communications Inc. and other assets. With its licensed spectrum through its subsidiary, Look, UBS is a Canadian digital television broadcaster and broadband wireless service provider.

Look Communications describes its mission is to be an M(3) - Mobile Multi Media - entertainment and information service provider in Ontario and Québec. The company is developing an M(3) network and currently delivers a full range of
communications services, including high-speed and dial-up Internet access, Web applications, digital television distribution, and superior customer service to both the business and residential markets.


mediacastermagazine.com - Mediacaster - 4/14/2007