Alternative BCE deal looks unlikely

The proposed takeover of Bell Canada Enterprises remains in doubt as the Thursday, Dec. 11, closing date nears. Most recently, BCE responded to widespread media reports about a potential alternative to a complete buyout, issuing a statement saying it had not received a proposal for an alternative deal that would see the prospective buyers take a minority stake in BCE instead. In any case, it does not sound like the banks that are supposed to fund the $42 billion acquisition would support an alternative deal, according to reports in Canada's Financial post and elsewhere.

The alternative deal reportedly would see a 20 percent stake in BC exchanged for about, "$8 billion to $10 billion, along with the payment of a special one-time dividend to common shareholders," the Post reports. KPMG, according to the Post, is set to undertake a final solvency review of the deal by Thursday.

For more:
- The Financial Post has this story [1]

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The BCE acquisition has been on thin ice lately [2]
The prospective BCE buyers launched their bid in 2007 [3]