Williams Communications to Sell Rest of Enterprise Services Business

Williams Communications (WCG Quote) agreed to sell its Canadian enterprise services business division, Williams Communications Canada, to Telus (TU Quote), but the financial terms of the deal weren't disclosed.

Telus plans to retain Williams Communications Canada's employees, and the company expects to close the merger May 31. The acquisition requires regulatory approval. Telus, which is based in Burnaby, British Columbia, is a telecommunications service provider.

In January, Williams Communications signed a deal to sell its U.S. and Mexico enterprise services businesses to privately owned firm Platinum Equity in a bid to focus on its core broadband network businesses. The company expects to close the Platinum transaction March 31.

Earlier this month, Williams Communications, Tulsa, Okla., said it would issue $1.4 billion of structured notes due 2004 and use the proceeds for capital spending on telecom assets.

In recent New York Stock Exchange trading, shares of Williams Communications, which provides voice, data, Internet and video services to communications service providers, gained 22 cents, or 2.3%, to $9.97. Telus lost 16 cents, or 0.8%, to $19.97.