BCE Down Over Buyout Concerns

BCE Inc. (BCE) shares were down nearly 3% on Wednesday morning on fresh worries that the C$52-billion buyout of Canada's biggest telecom company is in jeopardy.

The latest concern stems from reports that suggest the $20-billion leveraged buyout of Clear Channel Communications Inc. (CCU) is in trouble because banks financing the deal are unwilling to take a mark-to-market loss.

What appears to have BCE investors worried is the fact that several of the banks involved in the Clear Channel deal, including Citigroup Inc. (C), Deutsche Bank AG (DB) and Royal Bank of Scotland Group Plc (RBSPY.PK) - are also on board to finance the purchase of BCE.

A BCE spokesperson told reporters Tuesday afternoon that the buyout remains on track.