BCE addresses Canadian regulatory commission concerns

By Lisa Kerner

Charlotte, N.C., May 19 - The Canadian Radio-television and Telecommunications Commission (CRTC) said all of its conditions have been fulfilled, with two minor exceptions, in BCE Inc.'s proposed acquisition by an investor group.

The investor group includes 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.

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.

According to a BCE news release, the CRTC requested that an amended principal investors agreement be filed with the commission within 30 days addressing "the mechanics of the appointment of an independent member of the board of directors should certain circumstances arise in the future."

The CRTC also noted an outstanding issue concerning the disposition of the balance of the tangible benefits payable by BCE as a result of the transaction. BCE said to address this issue, it will direct 10% of these benefits to the BCE New Media Trust.

The transaction is expected to close before the end of the second quarter of 2008, the release stated.

It was previously reported that the Quebec Superior Court approved the plan of arrangement and dismissed lawsuits brought by certain debenture holders related to the going-private transaction.

Industry Canada has already approved the proposed C$51.7 billion deal, BCE said.

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

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