BCE Finalizes Largest Leveraged Buyout In Ontario At $51B

Ontario, Canada (AHN) - BCE Inc. has reached an agreement with a consortium led by Teachers' Private Capital, the private investment unit of the Ontario Teachers' Pension Plan, finalizing the largest buyout in history.

BCE Inc., which is Canada's biggest phone company, will be purchased as world's largest leveraged buyout for $51 billion, according to a statement on Friday.

The deal with the Montreal-based company was originally announced about a year ago and it will be completed by December 11 at the original price of $42.10 a share, the statement said.

Buyers include the Teachers' Private Capital, Providence Equity Partners Inc., Madison Dearborn Partners LLC, and Merrill Lynch Global Private Equity.

The private equity consortium's biggest buyout will be financed and advised by Citi, Royal Bank of Scotland, Deutsche Banc, TD Securities and Morgan Stanley.

Shares in Bell Canada's parent, BCE, jumped by 12.3 percent to $38.86 per share in trading on the Toronto Stock Exchange, which is the biggest gain since April 2002.

U.S. markets are closed for the Fourth of July holiday.