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Largest Canadian takeover agreed | Largest Canadian takeover agreed |
(about 6 hours later) | |
Phone company Bell Canada has agreed to be bought for 51.7bn Canadian dollars (US$48.5bn; £24.1bn), the largest deal of its kind in the country's history. | Phone company Bell Canada has agreed to be bought for 51.7bn Canadian dollars (US$48.5bn; £24.1bn), the largest deal of its kind in the country's history. |
It is being bought by a consortium whose members include two private equity firms and one of Canada's largest public sector pension funds. | It is being bought by a consortium whose members include two private equity firms and one of Canada's largest public sector pension funds. |
The Ontario Teachers' Pension Plan Board invests the retirement funds of the province's current and ex-staff. | The Ontario Teachers' Pension Plan Board invests the retirement funds of the province's current and ex-staff. |
Bell Canada has about 18 million customers and 54,000 staff. | Bell Canada has about 18 million customers and 54,000 staff. |
'Huge value' | 'Huge value' |
The takeover relates to the parent company, Bell Canada Enterprises. | |
As well as telephone and internet business, it owns a satellite communications company, Telesat Canada, and has an interest in CTVglobemedia, Canada's premier media company, which owns the Globe and Mail newspaper. | |
The company generated sales of more than US$16bn last year. | |
The firm was the subject of a fierce bidding war involving a number of private equity operators as well as Telus, Canada's second largest phone company. | The firm was the subject of a fierce bidding war involving a number of private equity operators as well as Telus, Canada's second largest phone company. |
The winning consortium includes Providence Equity Partners and Madison Dearborn Partners, both US businesses. | The winning consortium includes Providence Equity Partners and Madison Dearborn Partners, both US businesses. |
The deal is being structured to meet Canadian laws capping foreign ownership of shares in the flagship firm to 47% of its total equity. | The deal is being structured to meet Canadian laws capping foreign ownership of shares in the flagship firm to 47% of its total equity. |
"This is a huge amount of value delivered to our shareholders," Bell Canada's chief executive Michael Sabia said of the deal. | "This is a huge amount of value delivered to our shareholders," Bell Canada's chief executive Michael Sabia said of the deal. |
The transaction must be approved by Bell Canada investors as well as federal regulators before it can proceed. | The transaction must be approved by Bell Canada investors as well as federal regulators before it can proceed. |