The Canadian government had blocked a bid last Monday from a Egyptian telecom tycoon Naguib Sawiris led company to purchase a fiber optic network. The reason for the rejection of the bid would be national security concerns.

This was a surprise move by the Canadian government with little or no explanation. The move also puts into a questionable light the openness of the country for foreign investment in sectors ranging from telecommunications to oil extraction from shale formations.

Last May, Manitoba Telecom Services Inc had announced the sale of its Allstream fiber optic network for a price tag of CAS520 million or USD503.4 million. The purchase was made by Accelero Capital Holdings, whose majority owner is Naguib Sawiris.

The said deal was rejected last Monday, with MTS saying that the federal government did not approve of the same. The reason was 'unspecified national security concerns'. The government further rejected MTS and Accelero's offer to address those 'national security' concerns.

According to Canadian Industry Minister James Moore, the deal was blocked under the national security provisions of the Investment Canada Act. The minister stated that it operates a national fiber optic network providing critical telecom services to business and governments, including the Canadian government.