Telus Cancels Plan to Become an Income Trust

8:05 am on November 25, 2006 | Category: Business, Corporate, Regulation

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Canada’s second largest telephone provider, Telus Corp., announced on Friday afternoon that it has abandoned plans to convert into an income trust format, due to the federal government’s recent decision to tax trusts in much the same way as corporations.

“Telus management and board of directors believe that it is no longer in the best interests of the company and its shareholders to proceed with the reorganization,” the telephone giant explained in a statement. “The board has unanimously decided to not proceed with the conversion.”

The main phone company in Eastern Canada, Bell Canada Enterprises, had also made plans to become an income trust, but is currently reviewing that decision, and will, by all indications, come to much the same conclusions as Telus.

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