BCE: Stock Jumps on News of Financing Agreement

BCE Inc. (BCE) shares jumped 12% to $39.40 immediately after trading resumed following Friday morning's announcement that telecom giant has finally reached an agreement with a consortium of buyers that will take BCE private at the agreed on price of $42.75 a share.

The company said the deal is expected to occur on or before Dec 11, 2008.

BCE added that prior to closing, the company will not pay dividends on its common shares but will continue to pay dividends on its preferred shares. The break fee on the deal was also increased from C$1-billion to C$1.2-billion.