The proposed leveraged buyout of Bell Canada by the Ontario Teachers' Pension Plan, along with two U.S.-based private equity firms, is generating more controversy. A group of Bell Canada bond holders are organizing themselves toward possible legal action for not being properly considered in the acquisition agreement.
Their movement follows the accusation by bloggers that OTTP simply is a stalking horse that will meet obligations to keep the majority of the company Canadian-owned, but later might flip its investment quickly if the Canadian government loosens restrictions on foreign ownership.
For More:
- Here's The Toronto Star's report on bond holder concerns