Ontario Teachers Pension Plan Grabs BCE

[Richard King]

http://realtimetraders.com/sp/todaystop.asp?date=06/30/2007&item=9
In what is touted as the largest takeover deal in Canadian history, BCE Inc., (BCE, BCE.TO), a Canadian communications giant, agreed Saturday, to be acquired by an investor group led by the Ontario Teachers Pension Plan....

Other BCE holdings consist of Telesat Canada, satellite operations and systems provider, and an interest in Canadian media company CTVglobemedia.
More...

[FTA Michael]

http://www.canada.com/topics/news/national/story.html?id=06c753af-42b4-45c4-9ab4-6e8961daef60&k=1363

The buyers will take BCE private, changing the ownership structure of a blue chip corporation described as an investment for widows and orphans because of generous dividend payments.

[Richard King]

This should make for some interesting wage negotiations when the contracts for the various union employees of BCE come due. I would consider this to be a conflict of interest for a union to buy a public company that is negotiating with other unions. Now the teachers (owners of the pensions and hence the company) sit on the other side of the table from the communication workers. Where is the teachers' union's loyalty going to be? Could be interesting.

[FTA Michael]

Maybe it'll mean that both sides will negotiate positively and look for a fair contract? What a concept!