It's been a long process, but there's finally a deal. BCE (NYSE: BCE), which is the largest telecom company in Canada, has agreed to a $48.82 billion deal. The buyers include the Ontario Teachers Pension Plan, Providence Equity Partners, and Madison Dearborn Partners.

And, yes, it's the biggest buyout in Canada's history. It's even bigger than the TXU (NYSE: TXU) deal.

The transaction involved several other potential suitors, such as KKR and Cerberus Capital.

Because of increased competition and slower growth, BCE was ripe for a buyout. It also helps that the company has juicy cash flows.

So, by being a private company, BCE will have more leeway in making some key operational changes (such as layoffs and spin-offs).

The biggest winners are BCE's shareholders. After all, since late March, the shares have surged about 40%.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

BCE Inc. (NYSE: BCE), the big Canadian phone company, is being bought out by the Teachers Private Capital, the private investment arm of the Ontario Teachers Pension Plan, Providence Equity Partners Inc., and Madison Dearborn Partners LLC. Private equity comes to Canada. The price was over $48 billion.

The price is virtually no premium to the current value. The stock trades at $38. The rationale for this is that BCE's shares have risen about 40% since rumors about a buyout began to circulate in the spring. According to the company's PR statement: "The transaction values BCE at 7.8 times EBITDA (earnings before interest, taxes, depreciation, and amortization) for the 12-month period ending March 31, 2007."

This is just the kind of transaction that institutional shareholders hate. And, it's probable that the purchase will be challenged by large mutual funds and pensions that own shares. The argument that the buyers make is that it's not their fault that rumors sent the share price up. The shareholders argue that there should be a premium to the current price regardless of what caused the shares to trade where they are.

Assume that this deal is not done yet.

Douglas A. McIntyre is a partner at 24/7 Wall St.

OK, so now Canadian teachers are in the buyout game? Actually, the answer is yes.

Well, it's through the Ontario Teachers Pension Plan, which has a ton of capital to put to work. And it looks like the fund may make a bid for Bell Canada (NYSE: BCE). The deal might also include private equity firm Providence Equity Partners (the firm has purchased telecom companies in Denmark and Ireland).

In fact, the Ontario Teachers fund already holds a 5% stake in BCE.

OK, does this still seem far-fetched? Not necessarily. Basically, the Ontario Teachers is fairly aggressive and has done buyouts in the past.

BCE is also a good candidate for a transaction. Over the past year, the company has restructured operations – yet the stock price has not moved much (at least not until the buyout rumors emerged).

And, according to a story on CNBC, the buyout price is rumored to be $38 to $40. Currently, the stock price is up 7% to $30.27.

Although, as is common with these things, a deal can easily fall apart.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.