Status Report: BCE - Teachers Private Capital

This entry will simply note that the widespread concerns regarding potential financing issues with the BCE, Inc. (BCE) - Teachers Private Capital merger -- somehow associated directly with the Clear Channel (CCU)-Bain situation -- seem to have been proven to be essentially baseless, if not comical as stated on March 27. In fact, as widely reported, Toronto Dominion has been outwardly vocal in expressing the bank's continued interest to finance this transaction under the agree upon terms when/if the companies are in a position to complete the transaction.

Apparently, this sort of anxiety/reassurance process will be obligatory in many private equity deals for the foreseeable future.

On the regulatory front, there has been no indication of an imminent decision from Industry Canada, although there is no reason to anticipate this regulatory matter continuing much longer in light of the CRTC approval two weeks ago. It would be somewhat surprising if the Industry Canada review continued beyond this month.

On the legal front, no developments have surfaced in the BCE bondholder appeal of the Quebec Superior Court decision. The opening date of hearings remains scheduled on April 28, 2008 and, as noted by the companies, will continue for approximately five days. If the bondholders continue to pursue the appeal, it is fully expected that their case will be summarily rejected during the first week or two of May 2008.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.

Comments

[Charling:]

"On the regulatory front, there has been no indication of an imminent decision from Industry Canada"

I thought Industry Canada already approved it...

2008 Apr 14 12:35 PM

[Charling:]

www.reuters.com/articl...

2008 Apr 14 12:37 PM