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NovAtel’s ownership impact not expected to hit employeesBy LYN ENS of The HerafdNo short-term effect is expected in Lethbridge’s NovAtei cellular telephone-manufacturng plant withprovincial government ownership.Hfgh-ranEing Telus officials visited NovAtet plant employees in Lethbridge Wednesday ^‘to reassure them (NavAteTs) impending change of ownership will not have significant short-term effects.” Telus managing director Jim McDonald of Edmonton, said' a review of the operation was underway, and is scheduled to continue “over the next couple of months.” MeDonatd said m an interview that NovAtei would' likely notrelease any plans which come of the corporate review. •“This is a competitive business/' he said.Telus Corp. is selling its money-losing cellular phone subsidiary back to the Alberta government for $159.4 million,The government will also pay Telus — the company created last fall when the province sold shares in Alberta Government Telephones to private investors — up to $15 million to manage NovAtei for the next two years.The company employs 1,400 peo pie in Lethbridge and Calgary, making and selling cellular telephones and network equipment.Telus shares were sold to private investors last fall The $i-billions-liare offering was tarnished* however, when NovAtel’s projected earnings of $16.9 million were revised to a projected loss of $4 million.Neither the government nor the company would reveal NovAfeTs actual financial performance forthe last half of 1990.On Sept. 23, the government granted Telus an option to sell NovAtei back to the province; the company announced Monday it would exercise that option.The deal was effective Dec. 31 and is expected to close Jan, 17.
Newspaper Details
Lethbridge Herald
Lethbridge, Alberta, CA
Thu, Jan 03, 1991
Page 17
Full Page
Clipped by
Chinook A.
AB, USA 26 Oct 2022
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