BCE Accepts a Bid

Article Excerpt

BCE INC. $41.32 (Toronto symbol BCE; SI Rating: Above-Average) has accepted a $42.75- a-share all-cash takeover offer from a group led by the Ontario Teachers’Pension Plan. The group will also redeem all of BCE’s outstanding preferred shares and debentures. Two-thirds of BCE investors must approve the transaction at a special meeting later this year. Counter offers are still possible. For example, TELUS CORP. $64.64 (Toronto symbol T.A; SI Rating: Above average) could renew its merger proposal. Telus could afford to pay more for BCE than other potential bidders, since a merger between the two would produce significant savings. BCE is now a hold. Telus is still a buy. buy…