This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BCE Bids $3.7B to Take Bell Aliant Private

NEW YORK (The Deal) -- Canadian telecom giant BCE (BCE - Get Report) on Wednesday committed C$3.95 billion ($3.68 billion) to take Bell Aliant private in an effort to streamline its corporate structure and flush out duplicate costs.

Montreal-based BCE said it would pay C$31 in cash and stock for each of the 127.5 million shares of Bell Aliant it does not already own. BCE, which already owns about 44% of Bell Aliant, said post-deal holders of the target would own about 7% of the combination.

Halifax, Nova Scotia-based Bell Aliant has telecom customers in New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and rural regions of Ontario and Quebec. Aliant was formed in 1999 from the merger of Maritime Telephone and Telegraph Co., Island Telecom, Bruncor Inc. and NewTel Enterprises, and has been affiliated with BCE and its predecessors since 2006.

This latest privatization offer was evaluated and recommended by independent directors of Bell Aliant with advice from Scotia Capital and Barclays Capital Canada. BCE said that as part of the deal it intends to invest C$2.1 billion across the Atlantic Canada region over the next five years to roll out broadband wireline and wireless services.

BCE chief executive George Cope in a statement called Bell Aliant "a core part of BCE's national communications operations," and said the combination should improve efficiency.

"Privatizing Bell Aliant enhances our broadband investment strategy and capital markets objectives while delivering great value to the public minority shareholders who have supported Bell Aliant's success," Cope said. "In line with our investment-focused strategic imperatives, BCE looks forward to continuing network and service innovation to benefit consumers and business customers across Bell Aliant's territory."

BCE already controls Bell Aliant, and the target's results are already consolidated within BCE's public financial and operating reporting. The company said that bringing Bell Aliant fully in-house would eliminate "redundant public company costs" and generate about C$100 million in pre-tax annual synergies.

BCE said it would fund the cash component of the deal from available sources and issue about 61 million common shares for the equity portion. The deal is expected to close by the end of November, subject to approval of more than 50% of Bell Aliant non-BCE owned shares.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BCE $40.37 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs