The Successful Investor Hotline – Friday, October 19, 2012

Article Excerpt

BCE INC., $42.86, Toronto symbol BCE, has failed to win regulatory approval for its $3.4-billion deal to buy Astral Media Inc. (Toronto symbols ACM.A and ACM.B). Montreal-based Astral owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as the Movie Network, Family Channel and Teletoon. It also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C. Regulators felt the purchase would give BCE an overwhelming share of the TV broadcast market, which would hurt competition. The company plans to appeal the ruling. If the deal is dead, it will have to pay Astral a $150-million breakup fee. To put that figure in context, BCE earned $788 million, or $1.02 a share, in the three months ended June 30, 2012. BCE is still a buy. BCE was recently covered in the October 2012 issue of The Successful Investor. Click here to access it. BCE was recently covered in The Successful Investor Hotline for August 24, 2012. Click here…