Canada's Largest Telecom Company BCE To Proceed With Privatization

March 10, 2008 7:26 a.m. EST

Ottawa, Canada (AHN)- A Quebec superior court judge has given the go signal for Canada's largest telecom company, BCE Inc., to proceed with its planned privatization amounting to $52 billion in cash.

Judge Joel Silcoff resolved Friday that the buyout plan for BCE remains "fair and reasonable". Bondholders blocked the divestment saying the move would treat them unfairly- BCE will be heavily in debt and the bonds would be a riskier investment.

The bondholders, including Global Asset Management Inc. and Aegon Capital Management, said the transaction breached the terms of the bondholder agreement.

A consortium composed of the Teachers' Private Capital, the private investment unit of the Ontario Teachers' Pension Plan, Providence Equity Partners, Madison Dearborn Partners and Merrill Lynch Global Private Equity have been spearheading the privatization- the biggest takeover in the history of Canada if the plan pushes through.

Under the terms of the plan, an investor group will buy all of the common shares of BCE not already owned by Teachers' for $43.20 cash per common share.