Shareholders of BCE Inc. voted overwhelmingly Friday in favour of a $52-billion takeover deal led by the Ontario Teachers' Pension Plan.

At a special meeting in Montreal, company chairman Richard Currie said owners holding more than 62 per cent of the outstanding common and preferred shares had cast votes, with more than 97 per cent of the votes in favour of the takeover.

BCE CEO Michael Sabia will step down once the takeover is complete.
(Canadian Press)

"This is an important event," said Michael Sabia, president and CEO of BCE Inc., following the announcement of the vote. "An important date in the history of the company."

Earlier in the meeting, shareholders were also told that Sabia will step down when the privatization of the telecommunications company is completed.

Sabia had previously said the management team would stay on after the takeover. 

While the vote results were definitive, many BCE shareholders took time before the vote to question Sabia and Currie on the company's decision to sell.

"I do not understand why you are selling out," said one female shareholder. "Is it because you see the precipice?"

Some shareholders opposed the takeover because they will have to pay capital gains taxes on their shares, while others questioned how much Sabia and Currie stood to make on the deal.

Sabia said the interests of the company's board of directors were essentially the same as those of individual shareholders.

"We're all in the same boat, we've all made the same investment decision," Sabia said.

BCE is expected to cease being a publicly traded company by the first quarter of 2008. But at least one report has suggested the takeover may be delayed because the CRTC is planning to review it.

Late Friday, the federal Competition Bureau cleared the Teachers'-led acquisition of BCE. The bureau looked into the case because Teachers' also has an ownership stake in Manitoba Telecom Services — a BCE competitor. In the end, it allowed the takeover to proceed because Teachers' has no right to appoint members to the board of MTS.     

Joining the Ontario Teachers' Pension Plan in the takeover bid are subsidiaries of investment firm Providence Equity Partners Inc. and Madison Dearborn Partners LLP.

The Teachers' plan proved victorious over two bids from groups led by the Canada Pension Plan Investment Board and Cerberus Capital Management LP.

BCE shares gained eight cents to end at $40.15 on the TSX. The takeover deal gives $42.75 in cash for each BCE share.