In a surprising decision yesterday, the Quebec Court of Appeal has blocked the pending June 30th takeover of Bell Canada by the Ontario Teachers Pension Plan.
The Globe and Mail reports:
The biggest corporate takeover in Canadian history is in jeopardy after a Quebec court ruled that BCE Inc.'s $35-billion sale to Ontario Teachers' Pension Plan is unfair to bondholders.
The court's unexpected rejection of the deal will likely trigger a sharp selloff in BCE shares today, potentially wiping out gains that shareholders big and small have been anticipating since last summer when Ontario Teachers struck the deal to buy the company for $42.75 a share.
Analysts said the stock could plunge from its closing level of $37.12 yesterday to around $30.
Canadians who don't own Bell shares, however, can breathe easier.
For the moment, our cell phones have been spared the sorry managerial fate the Teachers' Pension folks have brought to the Toronto Maple Leafs.
For more reading on this major ruling, which has attracted international attention, see:
- Quebec Court Blocks Takeover of Bell Canada - New York Times
- Canadian Court Rejects Buyout of BCE - Wall Street Journal
- BCE deal 'is dead,' lawyer says - Ottawa Citizen
- BCE buyout derailed - Montreal Gazette
- Bell Canada deal blocked - Los Angeles Times
- The biggest buy-out ever blocked by Canada courts - BloggingStocks
- BCE and the Purchaser to seek leave to appeal to the Supreme Court - Earthtimes (UK)
- BCE sale hits new snag - CBC
- Garry J. Wise, Toronto