Kincardine Mayor Larry Kraemer expects to call an emergency session of council to discuss the decision by the Competition Bureau to cancel a planned takeover of Bruce Telecom by Eastlink.

Kraemer said last night the day had been brutal and that the decision to nullify the deal presented a real conundrum for councilors.

“I’m totally taken back by the whole thing” the mayor said.

Kraemer said he had been aware of some of the concerns but not the announcement from the Competition Bureau.

The Bureau said in a press release that if the deal went ahead, it would likely have resulted in a substantial lessening or prevention of competition in the towns of Port Elgin and Paisley.

It also said that Eastlink’s purchase of Bruce Telecom would likely have resulted in higher prices and fewer choices.
In the absence of the dynamic rivalry that exists between Eastlink and Bruce Telecom, customers would also have been deprived of the benefits of innovation in their telecommunications services.

The mayor said he thought the concerns were a small portion of the total deal but they turned out to be a greater challenge than he thought.
Yesterday also saw a release from the municipality complaining that the press release from the Competition Bureau was issued without notice and contained inaccuracies.

Kincardine says the parties have not terminated their agreement and that the municipality has not decided to abandon the proposed transaction.