Telus Corp. (TSE:T), Canada's third-largest carrier, fluctuated after agreeing to acquire Mobilicity, the struggling Canadian wireless company, for $350 million.
The U.S.-listed shares were up 0.2 percent at $34.97 at 9:45 a.m. after dropping to as low as $34.78.
The deal is still subject to approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity's debtholders, Toronto-based Mobilicity said in a statement late on April 17.
Telus has twice tried to buy Mobilicity, but both times the deal was rejected by Industry Canada. This time, however, Mobilicity said it believes the deal will satisfy the federal agency's criteria and will not affect competition in the Canadian wireless sector.
Mobilicity, which filed for court protection from creditors last year after running short of cash, has been seeking a buy and had contacted 25 organizations about submitting bids.
Mobilicity said it reached the deal after Vancouver-based Telus submitted the only acceptable bid among five it received.
Mobilicity has 165,000 active subscribers and offers lower-cost unlimited talk and text plans. It said in announcing the new deal that the Canadian market for commercial mobile services has changed since January with recent auctions of spectrum.
The proposed deal is supported by approximately 95 percent of the holders of the company's 15 percent senior unsecured debentures due in 2018, Mobilicity said.