Bell Canada takeover ruling heads to Supreme Court

Hopes for the $52 billion takeover of Bell Canada’s parent company, BCE Inc., have revived after Canada’s Supreme Court agreed to hear an appeal of a lower court’s ruling that an investor group’s LBO was unfair to bond-holders. The court will hear arguments June 17.

Bond holders contend the privatization deal devalues their shares by adding $34 billion to BCE’s debt. BCE and the buyers had asked the Supreme Court to hear the appeal because the lower court decision would “destroy billions of dollars of value” in the company for shareholders. The company said it already had lost $5 billion in market share since the ruling.

For more:
- Read the CanWest News Service story [1]

Related articles:
Bell Canada fights time, financial challenges to deal Bell report [2]
Bell Canada bondholders became riled up last summer, and eventually sued. Bell Canada report [3]
The Bell Canada deal was stalled by credit market worries last week. Bell Canada report [4]