What did Michael Sabia Really Say?
So what do you think of BCE CEO Michael Sabia apparently spilling the strategic beans to CIBC analyst Dvai Ghose? After being somewhat cagey about the future of Bell Globemedia, which owns the Globe & Mail, CTV and TSN, Sabia reportedly told Ghose he would like to sell BGM by the end of the year at the latest. Not only that, but he has already has a valuation range in mind. Sabia also said Bell's $5-a-month long-distance offer, which was launched a year ago, was a “mistake”.
Sabia's comments came out of the blue, and were surprising in their openness and the forum he selected to unveil his plans. Perhaps in a case of spin control, BCE spokesman Peter Daniel attempted to downplay some of Ghose's recollections of the conversation - claiming issues were discussed in general terms rather than specifics. Without the luxury of being in the room when Sabia and Ghose met, it's hard to tell whether this is a case of a CEO who let his guard down or an analyst trying to create some news and raise his profile.
In other BCE news, its Bell Canada unit is shopping 850,000 local telephone lines - most of them in rural areas - to raise cash to apparently pay down debt. I guess the thinking is these lines produce steady income but they are low growth.
