To remind you, first there were rumors BCE is in talks with buyout firms. Then came a denial, followed closely by an acknowledgment: BCE is indeed considering taking the company private. Here are the reported players:
- KKR is considering taking control of one-third of the company with partners Canada Pension Plan Investment Board and two other pension funds, thus fulfilling the required majority Canadian ownership.
- Ontario Teachers Pension Plan is apparently assembling its own consortium and preparing to formally enter the bid process early next week. The group is said to be financed by Citigroup Inc. (NYSE: C) among others.
- And just to make shareholders happier, it is reported that two more U.S. private equity firms, giant Blackstone Group LP and Cerberus Capital Management LP, might form a third group. How this group would abide by the majority Canadian ownership law is still unclear, although Caisse de dépôt et placement du Québec might be shifting allegiances.
- Last time I also mentioned a possible merger between Bell (BCE) and smaller rival Telus Corp. (NYSE: TU). This might be more difficult from a regulatory point of view.
After BCE closed up some 6% and Telus up over 3% during my last post, I was going to ask if you think hubby should sell his shares in both these companies. He wanted to sell all, I talked him down to selling half, but then he never got around to it. Lucky, or he would have missed today's 4.5% and 2.3% run for BCE and TU respectively.
Thank you Don for the FT link this morning.
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