Rogers ups Cogeco stake for C$163 million

Rogers Communications, CanadaÔÇÖs biggest wireless company, has raised its stake in Cogeco and a subsidiary for C$163 million.  The increase in shares gives Rogers around 30 percent of Cogeco and 20 percent of Cogeco Cable, which says it is the second-biggest cable operator in Ontario, Quebec and Portugal, based on basic subscriber numbers. Rogers agreed to buy 1.62 million shares of Cogeco for C$46.4 million and 3.2 million shares of its subsidiary Cogeco Cable for C$116.6 million in cash, the Toronto-based company said in a statement.  There is a speculation that Rogers may be increasing its stake in Motreal-based Cogeco in preparation for a possible acquisition. However, Rogers has denied these reports, saying the purchases were for investment purposes only and that it had no current intention to acquire ownership in either company.  The Audet family holds majority control of Cogeco and Cogeco Cable. It is believed they have no intention to sell, with many members of the family holding executive roles in the firm.  Another company that could be interested in acquiring CogecoÔÇÖs operations could be Vid├®otron, the regional cable player owned by Quebecor, whose territory rests on the other side of CogecoÔÇÖs operations, in Eastern Ontario and Quebec. Also interested could be Calgary-based Shaw Communications, which acquired Mountain Cablevision in July. Roughly one third of RogersÔÇÖ sales are from wired telecommunications, including cable, internet and home-phone services.  It has been a shareholder in Cogeco for more than a decade.  Figures suggest that more than nine out of ten households in Canada are either cable or satellite subscribers. In order to drive growth in the maturing market, merger and acquisition activity becomes increasingly likely. *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *