Craig Wireless vows to continue fight for control of Look Communications

Craig Wireless International Inc. isn’t giving up its fight for control of Look Communications Inc. despite a legal setback forcing the company to withdraw a lawsuit in Manitoba and re-file it in Ontario. Craig Wireless filed the original suit in July in Manitoba’s Court of Queen’s Bench seeking to reverse transactions made during the months leading up to and during Look’s annual general meeting in May. But on October 17, the company filed a Notice of Discontinuance putting an end to the Manitoba lawsuit (RoW Update, Oct. 27/03). Boyd Craig, president of Craig Wireless, tells Report on Wireless that the company decided to take up the battle in a more appropriate jurisdiction. "What it means is that we’ve agreed that the proper jurisdiction should be Ontario," he says. Craig Wireless’ battle for a controlling interest in Look took a turn for the worse only days after deciding to move the lawsuit to an Ontario court. The western-based MDS operator currently holds a 29.9% stake in Look. On October 23, the CRTC conditionally approved an application by Look allowing Unique Broadband Systems Inc. (UBS) subsidiary UBS Wireless Services Inc. to take majority control of the eastern MDS operator. That approval allowed UBS Wireless to increase its ownership stake from 29.9% to 51.06%. Approval of the Look application is conditional upon the creation of a new set of non-voting shares to ensure compliance with Canadian ownership requirements. UBS shareholders will vote on amendments to UBS’ share capital on November 20, and if approved will signal full approval of the application. Craig is, however, concerned about the commission’s decision to conditionally approve the application without ever making it public. "I guess one position, at least the position we’re taking, is we’d like to see that application because so far it’s been done on a fast track scenario and we have not had access to the application. "But our position is that fast track scenario was really put in place to expedite applications that were non-contentious. But the CRTC doesn’t look at broader issues. They strictly look at it from their point of view. The fact that there are lawsuits out there is really none of their business, so they say," Craig states. But Craig has received assurances from the CRTC that it thoroughly studied the application. "What the CRTC has told us, at least initially, is that they’ve done their homework. They’ve taken a look at this application and if UBS (Wireless Services) can demonstrate that they are not foreign controlled then they’ll get approval," Craig says. Look’s application is now available for viewing at the CRTC’s offices. A commission spokesperson says that the application will be made available online within the next several weeks. For a more detailed article on Craig Wireless’ battle and the legal documents filed in the Court of Queen’s Bench in Manitoba, please refer to the Oct. 31, 2003 issue of Report on Wireless affiliate publication Canadian Communications Reports.

Craig Wireless vows to continue fight for control of Look Communications

News | November 5, 2003

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