BCE Deal Officially Busted
NEW YORK (Reuters) - The C$34.8 billion ($27.8 billion) buyout of Canada's biggest telecoms company BCE Inc (BCE.TO: Quote, Profile, Research, Stock Buzz) (BCE.N: Quote, Profile, Research, Stock Buzz) collapsed on Thursday after the buyers said a key condition to the deal was not met. The derailment was widely expected after BCE said late last month that its accountants, KPMG, had said that the company that would emerge from the deal would fail a solvency test because of its huge debt load. BCE struck the C$42.75 a share cash deal to be bought by the Ontario Teachers' Pension Plan, along with U.S.-based private equity firms Providence Equity Partners, Madison Dearborn Partners and Merrill Lynch Global Private Equity nearly 18 months ago. One of the conditions to closing the deal was receipt of a solvency opinion from a recognized valuation firm.
