Regardless of what the Supreme Court of Canada’s approval of the BCE Inc. takeover does for the stock in the near term, what matters most for many shareholders is the deal’s closing price. The banks financing the privatization of BCE are not expected to take it easy on the buyout group led by the Ontario Teachers’ Pension Plan. They will likely push for an 8% cut to the original deal price of $42.75 per share, according to Desjardins Securities analyst Joseph MacKay. “Based on the precedents set in the Clear Channel deal and the weak credit markets, we expect the banks to play hardball,” he told clients. This would bring the offer down to $39.25. A revised price would require a new shareholder vote, which would delay the deal’s closing until late in the third quarter, Mr. MacKay said, adding that no more dividend payments should be expected. As a result, the analyst maintained his “hold” rating on BCE and hiked his price target to $39.25 from $34. He also noted that final approval from Industry Canada is expected next week. Jonathan Ratner ...
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