Financial Turmoil Sends BCE Stock Down

With each new day of U.S. financials mayhem, investors in BCE appear less and less confident that the privatization bid for the giant telecom will get done.

The stock was down another 3% in morning trading on Monday, with the price now representing a 11% discount on the C$42.75 offer for the company led by Ontario Teachers Pension Plan. 

Some have argued that the continued challenges in the financial services sector could mean that the BCE LBO syndicate, which includes Deustche Bank (DB), Citigroup (C), TD Bank (TD) and Royal Bank of Scotland (RBS), may not be able to meet their financial commitments.

Other reasons to account for the slumping shares have also been discussed in recent days but analysts remain confident that the deal will close as expected in December.