Supreme Court agrees to hear BCE appeal
BCE 3-month trading chart
The Supreme Court of Canada has decided it will hear an appeal of last month's court decision that blocked the $51.7-billion takeover of BCE.
In a brief ruling handed down after the markets closed Monday, the high court said it would hear arguments June 17 at 9 a.m. ET.
The ruling — by a three-judge panel led by Chief Justice Beverley McLachlin — came in response to the telecom's request for an expedited hearing. The BCE buyout had been thrown into doubt by last month's Quebec Court of Appeal decision.
The lower court had unexpectedly ruled that Bell bondholders had not been treated fairly during the takeover process because their interests had not been taken into account. The bondholders said the deal would load billions in new debt onto the company, hurting the value of their bonds.
BCE shares fell as investors feared that Canada's biggest-ever takeover deal might collapse or be reworked at a price lower than the $42.75-a-share negotiated 11 months ago.
In its submission to the court, BCE had argued the Supreme Court should hear the case, saying the lower court ruling, if allowed to stand, would destroy billions of dollars of value and negatively affect the role of corporate directors.
The bondholders, in their submission, said the case did not warrant a high court hearing, saying the issue raised is not "one of national importance."
The deal faces a key deadline of June 30. After that date, the buyout consortium — led by the Ontario Teachers' Pension Plan — would have the right to walk away from the deal without paying a break fee that could reach $1 billion.
The Supreme Court gave no indication when it would issue its final ruling on the case.
BCE shares on Monday fell 40 cents to close at $34.65 on the TSX.
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