BCE, bondholders to face off in Supreme Court
BCE Inc. and its bondholders will meet at the Supreme Court of Canada on Tuesday to square off over the largest leveraged buyout in the world.
The bondholders, which include TD Asset Management, CIBC and Manulife Financial Corp., will argue they are not being treated fairly in the $52-billion takeover by a group of investors led by the Ontario Teachers' Pension Plan.
The buyout of the telecommunications giant includes about $34 billion in new debt financing.
The BCE buyout was thrown into doubt last month when the Quebec Court of Appeal unexpectedly ruled in favour of the Bell bondholders. The bondholders said the deal would load billions in new debt onto the company, hurting the value of their bonds.
On June 2, the Supreme Court agreed to an expedited hearing on the BCE case.
Arguments are slated to begin at 9 am. ET, and could be wrapped within three hours. The court could then issue an immediate decision, or reserve its ruling for a later date.
BCE shares traded down 12 cents to finish at $33.53 on Monday, well below the $42.75 that shareholders stand to receive if the buyout goes ahead as it currently stands.
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