BCE Dips Ahead Of Takeover Vote

Article Excerpt

BCE INC. $39 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 804.7 million; Market cap; $31.4 billion; SI Rating: Above average) has moved down since it accepted a $42.75-a-share takeover offer from a private group led by the Ontario Teachers’ Pension Plan. That’s partly due to concerns that the group may have trouble borrowing the cash it needs for the purchase. However, the group has already secured financing deals with several banks. BCE has also suspended its stock buyback program, which has put pressure on the stock. Assuming shareholders accept the offer at a special meeting on September 21, 2007, and communication regulators also approve, the group aims to complete the transaction in early 2008. Meanwhile, BCE will continue to pay quarterly dividends of $0.365 a share (3.7% yield). BCE is still a hold. hold…