What a difference a week makes. Last week the BCE (BCE/NYSE) deal looked in good shape after the Clear Channel settlement was reached.
Then today The New York Times broke the story that the BCE lending syndicate had delivered new terms to the buyers that hadn't been contemplated before. The syndicate includes Citigroup, Royal Bank of Scotland, Deutsch Bank and TD Securities. Some reports point to Citigroup, RBS and Deutsch as specifically pushing for new terms -- wanting the buyers led by the Ontario Teachers' Pension Plan to pay higher interest rates and comply with tighter loan restrictions.
The Wall Street Journal is even reporting that one issue on the table is whether or not BCE will continue paying a quarterly dividend until the deal closes.
This situation looks fluid. A meeting between the banks and buyout firms is scheduled for Wednesday in New York City. There may be loads of stories with endless speculation over the next 48 hours. Not to mention Wednesday night and Thursday.
Of course, most of what is being said now is off the record with reporters making extensive use of unnamed sources.
Yet reading it all leaves the impression that the deal will get done. But who knows? With so much happening in less than a week, from now to June 30 is an eternity.
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