BCE INC. $62

BCE INC. $62 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 868.6 million; Market cap: $53.9 billion; Price-to-sales ratio: 2.5; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.bce.ca) sells landline telephone services in Ontario, Quebec and the Atlantic provinces. Other operations include wireless, Internet and digital TV services. The company also owns radio and TV stations.

BCE has received shareholder and court approval for its friendly takeover of MANITOBA TELECOM SERVICES INC. $38 (Toronto symbol MBT; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 74.2 million; Market cap: $2.8 billion; Price-to-sales ratio: 2.8; Dividend yield: 3.4%; TSINetwork Rating: Average; www.mts.ca). This business provides telephone and wireless services in Manitoba.

Regulators must approve the deal. However, BCE expects to complete the purchase by early 2017.

Manitoba Telecom shareholders will receive $40.00 cash for each share they hold. Or, they can elect to receive 0.6756 of a share in BCE for each share. However, BCE has capped the total amount of cash it will pay. As a result, most Manitoba Telecom shareholders will receive 45% in cash and 55% in BCE shares.

BCE is a buy. Manitoba Telecom investors should select the all-stock option, which is currently worth $41.64 per share, compared to the $40.00 all-cash option.

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