BCE three-month trading

The decision by BCE Inc. to defer payment of its second-quarter dividend has led to speculation that the company is considering a deal with the bondholders who have challenged a $51.7-billion buyout deal.

On Thursday, the company said the board deferred its decision about whether to declare a second-quarter dividend until late June.

The late June date means the decision will be delayed until after BCE and the bondholders face off in the Supreme Court on June 17, where the company is appealing a Quebec Court of Appeal ruling that found the takeover treated bondholders unfairly.

The Canadian Press reported Friday that one scenario would see the $294 million that otherwise would be paid as the second-quarter dividend instead used to compensate bondholders.

BCE said that the money "will be retained by the company as BCE works to complete its previously announced transaction to sell the company" to the buyer's group, headed by the private investment arm of the Ontario Teachers' Pension Plan.

BCE stock ended the trading day at $34.79, up 11 cents on the day. That's still below the $37 range the shares were trading at before the Quebec court decision on May 21. Under the proposed takeover, the buyers will pay $42.75 a share.

Friday was the deadline for shareholders to ask to intervene in the Supreme Court hearing.

The takeover deal, which was announced 11 months ago, will pay shareholders a total of $34.8 billion, while there will be an additional $16.9 billion in debt.

But with global credit markets in flux following the U.S subprime mortgage meltdown, banks have found it much more difficult to raise the money for leveraged buyouts, and the BCE deal includes $34 billion in new debt financing.

That has led to concerns that the buyers may want to restructure the deal.

With files from the Canadian Press