BCE Buyers Mulling Minority Stake: Report

The proposed buyout of BCE(BCE), the Canadian telecommunications giant, appeared less likely as the private equity firms that agreed to the takeover debated instead whether to buy a minority stake in the company, the Financial Times reports.

Providence Equity Partners and the Ontario Teachers Pension Plan, which had originally agreed to purchase a combined 84% equity stake in BCE, are proposing to buy a fraction of the company as an alternative to having the deal completely fall apart, the newspaper reports, citing people close to the matter.

Many people close to the deal, however, say the purpose of considering such alternatives is to satisfy legal requirements and show good faith rather than to reach agreement on a real transaction, according to the Financial Times. ...