BCE agreed to sell out to a private equity consortium led by Ontario Teachers' Pension Plan in June at C$42.75 per share, for a total of C$52 billion ($51.3 billion). But doubts about whether the buyers could secure financing have battered BCE shares, pounding them as low as C$34 in mid-February.
But since several banks financing the $25 billion buyout of Clear Channel are also backing the BCE buyout, good news for Clear Channel is good news for BCE. On Monday, the warring parties in the Clear Channel buyout were in advanced talks to close the deal at about $36 per share, down from the previously agreed $39.20 per share deal.
BCE shares on the Toronto Stock Exchange rose 2% on Monday to $38.10 -- still a sizable discount to the $42.75 buyout price. But that gap narrowed on Tuesday when the shares traded as high as $39 -- their highest level since early January. At that level, the discount is 8.7%.
Ontario Teachers', which is partnering with Providence Equity Partners Inc., Madison Dearborn Partners LLC, Merrill Lynch Global Private Equity and Toronto-Dominion Bank on the buyout, has steadfastly insisted it intends to close the deal at the original price. - Peter Moreira
See story about BCE regulatory approval from TheDeal.com
See Dealwatch: BCE
See story about Clear Channel settlement from Dealscape
See Dealwatch: Clear Channel
If anyone was glad to hear the news that the Clear Channel Communications Inc. buyout is inching toward a resolution, it was the long-suffering shareholders of Canadian telecom giant BCE Inc.
