NEW YORK (Reuters) - The battle to take over Canada's biggest telephone company, BCE Inc. , may not be over yet, with some on Monday expecting a higher bid to emerge.
BCE on Saturday said its board recommended shareholders accept a C$42.75 ($40.52) a share offer from a consortium which includes the Ontario Teachers Pension Plan, Teachers Private Capital, as well as Providence Equity Partners Inc. and Madison Dearborn Partners, LLC.
The offer was worth an estimated C$51.7 billion, making it the biggest buyout in Canadian corporate history.
One trader said Canada's No. 2 phone company Telus Corp. could make a rival bid.
"I do believe there's a strategic buyer that we have yet to hear from, Telus," said John Orrico, portfolio manager of the Arbitrage Fund, which takes arbitrage positions in M&A deals.
"While they did enter the fray and did depart prematurely, I think they'll be back," said Orrico. "I think a strategic buyer always has an edge across the board."
Canada's Globe and Mail reported that U.S. buyout firm Cerberus Capital Management LP said it had not given up its pursuit of BCE, and was considering its options. A spokeswoman for Cerberus declined comment.
BCE on Saturday said its board recommended shareholders accept a C$42.75 ($40.52) a share offer from a consortium which includes the Ontario Teachers Pension Plan, Teachers Private Capital, as well as Providence Equity Partners Inc. and Madison Dearborn Partners, LLC.
The offer was worth an estimated C$51.7 billion, making it the biggest buyout in Canadian corporate history.
One trader said Canada's No. 2 phone company Telus Corp. could make a rival bid.
"I do believe there's a strategic buyer that we have yet to hear from, Telus," said John Orrico, portfolio manager of the Arbitrage Fund, which takes arbitrage positions in M&A deals.
"While they did enter the fray and did depart prematurely, I think they'll be back," said Orrico. "I think a strategic buyer always has an edge across the board."
Canada's Globe and Mail reported that U.S. buyout firm Cerberus Capital Management LP said it had not given up its pursuit of BCE, and was considering its options. A spokeswoman for Cerberus declined comment.
So, if I have this straight, there is a deal that is mostly put to bed, but that's not dramatic enough for the financial press, so they've got to invent some dark horse suitors to spice things up. A takeover romantic triangle, if you will.
Maybe the financial press can hire some ex-WWE "bookers," who might be able to engineer buyout stories to be a little more exciting than this.
So far, the whole Bell buyout story has been remarkably underwhelming.
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