BCE Inc. $37 – Toronto symbol BCE

Article Excerpt

BCE INC. $37 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 805.3 million; Market cap: $29.8 billion; SI Rating: Above average) moved a step closer to a takeover after gaining regulatory approval. As well, a court recently dismissed a class-action lawsuit by bondholders. These rulings improve the chances that the $42.75-a-share acquisition by a group led by the Ontario Teachers’ Pension Plan will succeed. The stock still trades below the bid price, mainly due to the problems in the credit markets. That could make it harder for the consortium to issue the bonds it needs to complete the takeover. If the deal falls through, BCE’s stock would probably suffer, at least in the short term. However, we feel its long-term prospects outweigh this risk. BCE is still a buy. buy…

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