Stifel ‘wouldn’t rule out’ competing bid for Telus International

After Telus Digital Experience (TIXT) confirmed the receipt of a proposal from Telus (TU) to acquire 100% of the outstanding shares of Telus Digital not already owned by Telus Corporation for $3.40 per share, Stifel noted that Telus in the past has reiterated no interest in buying back Telus Digital, but the bid “doesn’t come as a total surprise to us” given the opportunity for Telus to insource Telus Digital at a more favorable valuation and restructure it to focus on higher-growth, higher-margin business. The firm sees Telus Digital as “an attractive asset in light of a consolidating industry,” with strong and sustaining relationships with key customers like Google (GOOGL) and Meta (META), so it “would not rule out a competing bid,” the analyst tells investors. Stifel has a Buy rating on Telus Digital shares.