Ontario Teachers' Pension Plan Buys BCE

BCE Inc. (BCE) announced Friday that it has agreed to be acquired by the investment arm of Ontario Teachers' Pension Plan, Providence Equity Partners and Madison Dearborn Partners, for $48.82 billion in cash.

Reports are that this is the biggest buyout in Canada's history and the telecommunications industry globally.

Under the deal, BCE's shares will be purchased for C$42.75 or $40.15, a 40% premium over the average first-quarter share price before it rose in late March amid rumors of a buyout. I first recommended BCE in August 2006 at $23.01 and sold 25% of BCE at $36.31 in May. Anyone following my moves stands to see the position gain 70.3%, non including dividends, when the deal is completed.

I particularly like that the deal is for cash, instead of those messy cash-and-stock transactions.

You can read the Bloomberg report of the deal here.