BCE Is Not Happy With Outcome of Collapsed Privatization Deal

You didn’t think the BCE Inc. (BCE) saga was just going to disappear now that its massive privatization has officially collapsed did you?

BCE is demanding payment of the C$1.2-billion break-fee, saying it satisfied all closing conditions, other than the solvency opinion, which KMPG was not able to deliver by Thursday’s deadline. The purchaser, a group comprised of the Ontario Teachers’ Pension Plan, Providence Equity Partners, Madison Dearborn Partners and Merrill Lynch Global Private Equity, has said it is not obligated to pay the break-up fee.

BCE also said it will return capital to shareholders through a buyback program and reinstate its common share dividend beginning with its fourth quarter dividend payable on January 15, 2009. However, it has not provided additional details.

Teachers’ said the deal was terminated at 12:07 a.m. ET Thursday morning, but later in the morning BCE disputed that the purchaser was entitled to terminate the Definitive Agreement, saying that notice “was delivered prematurely, prior to the outside date [late Thursday] for closing of the transaction, and therefore invalid.”

Meanwhile, Citigroup (C), Deutsche Bank (DB), Royal Bank of Scotland (RBS) and Toronto-Dominion Bank (TD), the four banks which committed to finance the debt portion of BCE’s sale, issued a statement confirming that their obligations have terminated. “The banks are not in a position to comment on any dispute between BCE and the purchaser,” it added.

Comments

[tipalia:]

wonderful, BCE got what they deserve. Treat your customers with respect, change your egoistic culture . BCE the worst company to deal or negotiate with because of their arrogance and disdain to their customers and partners.

2008 Dec 12 12:13 PM