Monday, April 16, 2007

Bell Canada Considers Privatization

BCE, the holding company that includes Bell Canada, Telesat Canada and an interest in Bell Globemedia, is reviewing its strategic alternatives with a view to further enhancing shareholder value.

Specifically, BCE is holding discussions with a group of leading Canadian pension funds to explore the possibility of taking the publicly-traded company private. This group will be led by the Canada Pension Plan Investment Board (CPPIB), the Caisse de depot et placement du Quebec and Canada's Public Sector Pension Investment Board (PSP Investments), who have signed a non-disclosure and standstill agreement with BCE on a non-exclusive basis. Kohlberg Kravis Roberts and Co. (KKR), a leading global private equity firm, has also signed the agreement and will join the Canadian-led consortium as a minority partner.

BCE said it is driven by the ongoing need to maximize value for the company's shareholders, taking into consideration the need to meet all legislative and regulatory requirements, including ensuring the company remains Canadian, to meet existing foreign ownership restrictions.

See also