The Canadian Radio-television and Telecommunications Commission (CRTC) said it will open public hearings on May 6 on BCE Inc.'s C$3 billion proposal to acquire Astral Media, a company based in Quebec that owns specialty-television channels and radio stations.
CRTC, Canada's broadcast regulator, rejected the original bid of BCE to take control of Astral, saying that the latter would have inordinate influence once the deal is accepted.
BCE, the largest telecom company in the country, revised its takeover bid, agreeing to divest itself of the television and radio services of Astral. This revised bid was approved by Canada's Competition Bureau.
The hearing would be held in Montreal where CRTC could also consider penalties against BCE once it becomes successful in its takeover bid, suggesting that the company will then breach fair trading rules.
The deal has been criticized over fears that costs may become higher across the industry because of BCE's content power.
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