Comments on: Please Make “Belus” A Reality

By: moneygardener (AKA investor99)

moneygardener (AKA investor99) — Mon, 25 Jun 2007 20:37:34 +0000

I wonder if the fact that Telus shares are down 3.25% today while BCE shares are up 1.4% is an indication that the market believes Telus will buy BCE. I’m kind of torn as a Telus shareholder.

Big Debt / Big Cost savings and market share position…..its probably net positive over time I guess…

By: Financial Jungle Guy

Financial Jungle Guy — Tue, 26 Jun 2007 05:01:14 +0000

Gordon Pape agrees that the Telus-BCE merger is good for BCE preferred shares:

“Also, a Telus-BCE merger would be the best outcome for holders of BCE bonds and preferred shares, which include many institutions and pension plans. The company’s debt securities took a beating after warnings from the major bond rating agencies that a leveraged buyout would result in a downgrade. BCE First Preferred Shares Series AC (TSX: BCE.PR.C) rose 35 cents on Thursday in response to confirmation that talks are under way.”

http://tinyurl.com/2y9da7

By: Nick

Nick — Wed, 27 Jun 2007 01:49:19 +0000

I tend to look at this a different way. Telus has the largest union issues in the country. Bell has resolved theirs by having the union create it’s own company that Bell employs. Bell is not efficiently managed. The private equity guys can solve the management problem whereas Telus just brings more union strife to the table.

By: Financial Jungle Guy

Financial Jungle Guy — Wed, 27 Jun 2007 02:41:23 +0000

Can you put that into context? How serious are the union issues in terms of top and bottom lines?

I couldn’t spot any anomalies in their 2005 income statement, when they had their previous union stike.

By: Financial Jungle Guy

Financial Jungle Guy — Wed, 04 Jul 2007 05:29:09 +0000

Ellen Roseman on Belus.

It seems that BCE’s chief executive Michael Sabia and his board rigged the bidding process. They used a short time limit and a tight leash on information to prevent Telus from making an offer. Instead, they commandeered a buyout from the Ontario Teachers Pension Plan, one that would enrich the management team and leave it intact.

…

Getting acquired by a competitor may be a better fit for BCE than being owned by a giant pension fund, anxious to turn a profit on its investment by turning the company around.