BCE demands $1.2 billion divorce settlement
p2pnet news view Freedom | P2P:- Today, in our story on the collapse of the BCE deal, it was, “done just before the credit crunch made such agreements all but impossible, because banks that were struggling with their own liquidity problems were reluctant to loan the huge amounts of cash needed,” p2pnet said, quoting the BBC, and going on:
” ‘No termination fee will be paid by either side,’ it says.”
In an earlier story, the possibility of a $1.2-billion termination fee was mooted, we said, this time quoting the Globe and Mail.
Which was correct?
The Globe and Mail.
Here’s the official BCE notice saying the deal is down »»»
MONTREAL, Québec, Dec. 11 2008 — BCE Inc. today announced that it received last evening from the Purchaser, a company formed by an investor group led by Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, and affiliates of Providence Equity Partners Inc., Madison Dearborn Partners, LLC, and Merrill Lynch Global Private Equity, a notice purporting to terminate the Definitive Agreement dated June 29, 2007, as amended. BCE disputes that the Purchaser was entitled to terminate the Definitive Agreement, as such notice was delivered prematurely, prior to the outside date for closing of the transaction, and therefore invalid. Given the Purchaser’s position, the BCE privatization transaction will not proceed.
As previously announced, the closing of the privatization transaction is contingent upon the fulfillment of several closing conditions, including, pursuant to Section 8.1(f) of the Definitive Agreement, the receipt at the effective time of a positive solvency opinion from KPMG. Earlier this morning, KPMG confirmed that it would not be able to deliver an opinion that BCE would meet, post transaction, the solvency tests set out in the Definitive Agreement.
In light of these developments, BCE will be terminating the Definitive Agreement in accordance with its terms, and will be demanding payment of the $1.2-billion break-up fee from the Purchaser. All closing conditions have been satisfied by BCE, other than the solvency opinion, a condition to closing that was to be satisfied by its nature at the effective time. Under such circumstances, the agreement provides that the break up fee will be owed to BCE by the Purchaser. The Purchaser has taken the position that it is not obligated to pay the break-up fee.
In addition, the BCE Board intends that immediately following termination of the Definitive Agreement in accordance with its terms, it will address a reinstatement of its common share dividend beginning with its fourth quarter common share dividend payable on January 15, 2009, and that it will return capital to its shareholders through a Normal Course Issuer Bid.
(Thanks Kevin, and all the rest 
)
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BCE deal – BCE deal bites the dust: official, December 11, 2008
BBC – Canada`s biggest buyout collapses, December 11, 2008
p2pnet – `You owe us!` – BCE to Teachers` Fund, November 29, 2008
Globe and Mail – BCE pressing Teachers for fee payment, November 28, 2008
BCE notice – BCE privatization transaction will not proceed, December 11, 2008
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December 12th, 2008 at 10:43 pm
oh no not early termination fees…oh wait the teachers followed the rules and bell like they do to m,illions a customers also wants moneyu it should not get.
YA idiots