What to do with MBT

Article Excerpt

BCE INC. $57.82 (Toronto symbol BCE; Shares outstanding: 870.7 million; Market cap: $50.3 billion; TSINetwork Rating: Above Average; Divd. yield: 5.0%; www.bce.ca) has now received the final regulatory approvals for its acquisition of MANITOBA TELECOM SERVICES INC., $39.21, Toronto symbol MBT. Under the terms of the $3.9 billion deal, Manitoba Tel shareholders can choose either $40 in cash or 0.6756 shares of BCE for every MBT share they hold. Manitoba Tel investors have until March 14, 2017, to make their selection. However, BCE has capped the cash it will pay. That means most shareholders will get only 45% in cash, and 55% in BCE shares. Investors can still defer capital gains taxes on their stock portion. BCE is a buy. Manitoba Telecom investors should tender their shares to BCE. BCE…