Supreme Court to rule Friday afternoon on BCE
Last Updated: Thursday, June 19, 2008 | 4:23 PM ET
CBC News
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The Supreme Court of Canada will issue its ruling on the fate of a $52-billion takeover of BCE Inc. after stock markets close on Friday.
The top court issued a statement Thursday saying the decision is due to be released at 4:30 p.m. ET.
The ruling is expected to determine the fate of what has been called the largest leveraged buyout in Canadian history, the deal to privatize the telecom giant led by the Ontario Teachers' Pension Plan and its U.S. partners.
Their plan offered shareholders a big premium to their share price before the deal was announced, but that has cost bondholders $1 billion.
They challenged the transaction and lost in a lower court, but then won at the Quebec Court of Appeal in May. BCE then asked the Supreme Court to overturn that ruling.
Teachers' and its U.S. partners offered $42.75 a share last year, above BCE's market price, but plan to add $34 billion in debt to BCE to finance the deal. That has cut the trading price of some of the company's existing debt, angering bondholders
The bondholders, which include TD Asset Management, CIBC and Manulife Financial Corp., argued before the Supreme Court they are not being treated fairly in the takeover.
BCE shares rose 13 cents to close at $34.60 on the TSX.
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