Shares of BCE took a big jump higher Tuesday as takeover speculation continued to swirl around Canada's biggest telecom company.

BCE stock gained $1.59 to end at $34.23. The stock reached $34.98 earlier in the trading session to hit a new five-year high.

BCE three-month trading

The Ontario Teachers' Pension Plan — the biggest shareholder in BCE Inc. — says it is "exploring its options" regarding the telecommunications giant. Two media reports say the pension fund is actively doing some tire-kicking around BCE. 

In a filing Monday with the U.S. Securities and Exchange Commission, Teachers' said it is closely monitoring developments regarding BCE.

The pension fund dismissed reports that suggested it may be joining with U.S. private equity investment firm Kohlberg Kravis Roberts & Co. on a bid to buy BCE.

"Teachers' is not pursuing such transaction with KKR and has no current intention or plans to pursue such transaction with KKR," the fund said.

Teachers' owns almost 42.8 million outstanding shares of BCE, or 5.3 per cent.

Published reports on Tuesday painted several scenarios involving buyout bids for BCE involving Teachers'.

The Globe and Mail reported that Teachers' has approached another U.S. buyout firm, Providence Equity Partners Inc., about making an offer for BCE.

Citing unnamed sources, the Globe and Mail reported that Teachers' and Providence are willing to offer $40 a share, or $32 billion for BCE.

Additionally, the New York Times reported that Teachers' has approached the Caisse de Dépôt et Placement du Québec and the Canada Pension Plan Investment Board about making an offer for BCE.

The Times, again citing unnamed sources, pegged the value of an offer at $45 billion US.