Canadian court rules in favor of BCE; privatization still expected to close Dec. 11

By Lisa Kerner

Charlotte, N.C., Nov. 10 - BCE Inc. said the Saskatchewan Court of Queen's Bench ruled against an Oct. 27 claim seeking to halt the company's privatization transaction, which is slated to close Dec. 11.

BCE said it will continue to "vigorously defend" the remaining related claims, according to a company news release.

The suit was brought on behalf of common shareholders and seeks, among other things, the payment of second- and third-quarter common dividends, damages and an injunction to halt the going-private transaction until the dividends are paid. On Oct. 27, the company said the litigation was completely without merit and would be vigorously defended in court.

In July, BCE amended its definitive agreement with an investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, and Providence Equity Partners Inc., Madison Dearborn Partners, LLC and Merrill Lynch Global Private Equity.

The purchase price remains C$42.75 per common share under the final, amended agreement, while the reverse break-up fee was increased to C$1.2 billion.

On July 2, 2007, the investor group agreed to acquire all of the common shares of BCE not owned by Ontario Teachers for C$42.75 each and all of the company's preferred shares at between C$25.25 and C$25.87 each.

BCE is a Montreal-based communications company that provides telephone, internet, television and information services.

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