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story category BCE Takeover Solidified
Bank and buyers agree on terms of huge telco sale
12:33PM Saturday Jul 05 2008 by KathrynV
tags: business · telco · world
Tipped by TK Junk Mail See Profile
The takeover of Canada's largest telecommunications company BCE has finally been solidified after months of doubts. This is the biggest leveraged buyout ever and it’s caused a lot of concerns and questions to be brought up as a result of the size of the deal. However, all of the necessary approvals have now come through including the terms of the buyout itself. The deal which is worth $51 billion is slated to be complete before the end of the year.

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Forums » BCE Takeover Solidified
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TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast


edit:
July 5th, @12:56PM

What is coming ?

New CEO starts right away on July 11 and not in December when the deal closes.

No dividends to shareholders until after Dec 11.

Sales of BCE assets to provide payback to the new buyers.

Extensive layoffs to middle mgt.

Fixes for abominable customer service.

Potential for shareholder lawsuits:
»www.theglobeandmail.com/servlet/···Business
Even by ceding to the demand from the buyers for more control now, the company ends up in a potentially awkward situation of being run according to the wishes of the private-equity firms while still a public company for months to come, investors said.

"That will be an interesting corporate governance issue to deal with," said Rob Callander, a portfolio manager at Caldwell Asset Management, which sold most of its BCE shares earlier in the takeover drama. "I wouldn't think the existing board would want to be in a position to approve really dramatic events until the transaction is consummated.
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Devanchya
Smile
Premium
join:2003-12-09
Pickering, ON
·Bell Sympatico

Re: What is coming ?

Actually I don't see shareholder Lawsuits being a factor.

Legally the share price is end-date fixed. There is no way for a shareholder to say "The shares are really worth $50, when your buying them back at $47".

In the past, the number one issue with privatization (hate the term EPO used by some) is the on-going dept payments. The court statement that the bonds are worthless cut those short.

The main concern will be the fact the banks involved will want a pretty fast turn-around in profit. Also I wouldn't be surprised if some of the private equity listed ends up back on the Stock Market under a new symbol shortly.

macedon
Jazz me baby
Premium
join:2006-02-12
Canada
clubs:

Extensive layoffs to middle mgt.
Love that. GodSpeed!
They badly need better cost management, customer service and more Chinese walls...and did i say better management, not just grabbing folks that failed @ Telus and bring them @ Bell

.../

EPS

join:2008-02-13
Hingham, MA

Interesting...

If Canada didn't have strict laws regarding foreign ownership of telecommunications firms, this would probably make BCE a takeover target- look what happened to Alltel, this is not a good time to be stuck with holdings in a debt-privatized company.

new2vdsl

@bell.ca

Re: Interesting...

the writing was on the wall when they sold the yellowpages.....nice move sabia... lets see how the pension fund deals with the bell employee pensions......

macedon
Jazz me baby
Premium
join:2006-02-12
Canada
clubs:

Re: Interesting...

said by new2vdsl :

lets see how the pension fund deals with the bell employee pensions......
what employee pensions?
--
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Thats right, playing some old school on my mp3. Do you have problem with that?

BCEisbad

@teksavvy.com

Layoffs have already started...

Layoffs have already started, they are planning on increasing the service base in india...
some 50 people in ottawa were laid off last week...
more to come of course.

It will only get worse for Bell... but it's to be expected by a company that is so badly run...

Maynard G Krebs

@teksavvy.com

Re: Layoffs have already started...

said by BCEisbad :

It will only get worse for Bell... but it's to be expected by a company that is so badly run...
Maybe they'll outsource their Sympatico division to Teksavvy

R0CKY
TSI Rocky
Premium,VIP
join:2005-05-19
Chatham, ON

Re: Layoffs have already started...

said by Maynard G Krebs :

said by BCEisbad :

It will only get worse for Bell... but it's to be expected by a company that is so badly run...
Maybe they'll outsource their Sympatico division to Teksavvy
LOL.... never know!
--
TSI Rocky - TekSavvy Solutions Inc.
BCBoy

join:2008-05-27
Hawkesbury, ON
·Bell Sympatico

that'll be the day

I just ran across this story while tracking the throttling issue, and it seems very odd, the timing. Last year they roll out DPI throttling on their Sympatico customers. In March, they rolled out on the indie ISPs. Now, the way I understand trade negotiations (which I admit, isn't a good understanding) they take quite a bit of time from the first, um, thought, or executive office, or however these ideas come to be, to when the last paper is finally signed. Surely, the idea of a deal like this must have taken, say, a year or more? Right about the time they realized the shitstorm they were about to create with their throttling?

Things that make you go 'Hmm'...
Forums » BCE Takeover Solidified


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