Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

MTS chief executive planning to retire later this year; search for new CEO on

MTS CEO Pierre Blouin

Enlarge Image

MTS CEO Pierre Blouin (WAYNE GLOWACKI / WINNIPEG FREE PRESS FILES)

WINNIPEG - The CEO of Manitoba Telecom Services Inc. (TSX:MBT) is planning to retire later this year and the Winnipeg company has started to look for a new leader.

Chief executive Pierre Blouin will stay on until a new CEO has been appointed and will help with the transition process.

The telecom company says both internal and external candidates will be considered for the top job.

Under Blouin's leadership, MTS had tried to sell its business unit, Allstream, but Ottawa blocked a $520-million deal to sell it last year.

Federal Industry Minister James Moore, acting under national security provisions of the Investment Canada Act, rejected the proposal to sell Allstream to Egyptian investment group Accelero Capital.

The company wasn't able to line up another buyer for Allstream, which provides services such as Internet and telephone to businesses.

Canaccord Genuity analyst Dvai Ghose said Blouin, CEO since December 2005, has operated under very tough conditions. But he noted that MTS has maintained sector leading wireless and wireline market share in Manitoba and is enjoying the best broadband subscriber growth of any major Canadian telecom or cable company.

"We will be sad to see Blouin leave," Ghose said in a note.

Ghose also said the announcement of Blouin's retirement suggests that a near-term sale of Allstream or the telecom division is unlikely and that the environment remains challenging for MTS.

"In summary, we believe that Blouin's departure, while no doubt driven by personal factors, may have a negative impact on investor sentiment. That being said, we see limited downside in MTS shares due to the current 5.6 per cent dividend yield and our view that a further DPS (dividend) cut is unlikely."

History

Updated on Tuesday, August 12, 2014 at 9:47 AM CDT:
Adds photo

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100

Social Media

Canadian Mortgage Rates