UPDATE 1-Globalive says Canada ruling puts business at risk

* Regulator ruled company foreign-controlled

* Not near resolving financing, chairman says

* Says hurts chances of attracting new investment (In U.S. dollars unless noted)

By Wojtek Dabrowski

TORONTO, Nov 4 (Reuters) - Startup wireless carrier Globalive Communications says talks with new financial backers have stalled and its entire business is in danger following a ruling by Canadian regulators that found the company was controlled by foreigners.

"The whole business has been put at risk by this decision," Globalive chairman and founder Anthony Lacavera said in an interview. "We're not near resolving the financing issue and I don't see how we resolve it with this kind of pressure."

Privately held Globalive secured $700 million in financing from Egyptian-based Orascom Telecom (ORTE.CA: Quote, Profile, Research). It hoped to launch a wireless service in the next several weeks and challenge Canada's established Big Three carriers in a fight for mobile phone subscribers.

Globalive spent more than C$442 million ($413.1 million) on buying wireless spectrum in a government auction held last year.

While its regulatory woes are nearly catastrophic for the company, they are a big boon for the country's incumbent telecom companies, BCE Inc (BCE.TO: Quote, Profile, Research), Telus Corp (T.TO: Quote, Profile, Research) and Rogers Communications Inc (RCIb.TO: Quote, Profile, Research), which will enjoy less competition.