BCE going-private transaction set to close in second quarter

By Lisa Kerner

Charlotte, N.C., May 7 - BCE Inc. said it is on track to close its privatization transaction before the end of the second quarter of 2008.

Bell Canada chief executive officer Michael Sabia said in a news release that the Quebec Superior Court approved the plan of arrangement and dismissed lawsuits brought by certain debenture holders.

The Quebec Court of Appeal is expected to render a decision "expeditiously," Sabia added.

It was previously reported that the committee filing the lawsuits objected to the plan of arrangement, believing it to be unfair to debenture holders because it forces Bell Canada to guarantee $32 billion in loans incurred in the purchase of BCE shares, with nothing given in return.

Committee members hold bonds in Bell Canada, a BCE subsidiary.

Those opposed to the plan of arrangement include life insurance companies and money managers in the North American market place, including Barclays Global Investors Canada Ltd., CIBC Global Asset Management Inc., Franklin Templeton Investments Corp. and others, according to a prior news release.

Industry Canada has approved the proposed C$51.7 billion acquisition of BCE by the investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc., Madison Dearborn Partners LLC and Merrill Lynch Global Private Equity, BCE said.

Under a July 2, 2007 agreement, the investor group will 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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