Bad news for shareholders looking forward to the buyout that was supposed to take telco BCE private.
Reuters) - BCE Inc said on Wednesday it was unlikely its C$34.8 billion ($28.2 billion) leveraged buyout would close next month after its accountants ruled that the company that emerges from the deal would not meet a solvency test because of its huge debt load.
Shares of BCE, Canada's biggest telecom company, plunged almost 40 percent as investors reacted to the latest twist in the saga of the world's largest leveraged buyout, which is being led by the Ontario Teachers' Pension Plan.
The deal has already faced regulatory scrutiny as well as a Supreme Court of Canada challenge by angry debt investors as it inched its way forward to the scheduled December 11 closing date.
And on Wednesday, BCE -- the parent of Bell Canada -- said its accountants, KPMG, have found the company would not meet the buyout agreement's solvency test because of current market conditions and the amount of debt involved in the financing.
Bad news for shareholders, good news for the underwriting banks that weren't happy with the terms they had written.
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1 comment:
It's an ill wind that blows NOBODY good.
See, you can find a ray of sunshine anywhere if you look closely enough.
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