BCE wins right to appeal

3 Jun 2008

Canada’s BCE has been granted the right to challenge a decision by the Quebec Court of Appeal which had blocked a proposed takeover deal. The Supreme Court of Canada says BCE is able to launch an appeal against the Quebec court’s ruling, which sided with BCE bondholders who claimed that the terms of the proposed takeover were unfair. A consortium led by the Ontario Teachers Pension Plan made a buy-out offer for BCE last year. BCE shareholders voted overwhelmingly in favour of the CAD51.7 billion (USD51.3 billion) cash and debt buy-out in September, and the Competition Bureau subsequently added its approval. In late March 2008 telecoms regulator CRTC gave the deal a green light, although it added several conditions regarding corporate governance to ensure control remains firmly in Canadian hands.

Canada, BCE (old)