BCE INC. $35 Toronto symbol BCE

BCE INC. $35 has delayed declaring its second-quarter dividend of $0.365 a share. The company is currently appealing a ruling by the Quebec Court of Appeal in favour of BCE’s bondholders that could threaten the company’s $42.75-a-share privatization plan. The case will go to the Supreme Court of Canada on June 17, 2008. Delaying the dividend gives BCE more financial flexibility to negotiate a possible settlement with its bondholders. If it can’t reach a deal, BCE will probably pay the dividend in mid-July. Buy.

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