M&A

26 November, 2009

UPDATE 1-Rogers to buy C$163 mln stake in Cogeco

* Says purchase for investment purposes

* Cogeco Inc shares jump 10 pct to C$27.65

TORONTO, Nov 26 (Reuters) - Rogers Communications (RCIb.TO) said on Thursday it will spend more than C$160 million ($151 million) to buy stakes in a rival Canadian cable and telecommunications group headed by Cogeco Inc (CGO.TO).

Rogers said it planned to buy 3.2 million subordinate voting shares of Cogeco Cable Inc (CCA.TO) at C$36.43 a share and 1.6 million shares of parent company Cogeco Inc at C$28.61 a share. The total purchase is valued at C$163 million.

Rogers said the purchases were for investment purposes and it had no current intention to acquire ownership in either company.

Cogeco Inc shares jumped 10 percent to a year high of C$27.65 on Thursday afternoon, while Cogeco Cable shares climbed 5.6 percent to C$35.30.

($1=$1.06 Canadian) (Reporting by Scott Anderson, with additional reporting by Susan Taylor in Ottawa; editing by Peter Galloway) ((scott.anderson@reuters.com; +1 416 941 8106; Reuters Messaging: scott.anderson.reuters.com@reuters.net))

Source: http://www.reuters.com