Well, this can't really be considered a surprise. The BCE (BCE/NYSE) takeover by Ontario Teachers' Pension Plan looks shaky in the face of the world's worsening financial crisis. Or, perhaps more likely, the deal might still go through but not at the C$42.75 per share price.
From today's Globe and Mail:
Even though Teachers has an iron-clad agreement with its banks,
legal experts said the pension fund could run into political headwinds
if it sought to sue a bank that now has the British government backing
it as a major shareholder.
"We are into a new reality," said Malcolm Hitching, a banking specialist at British law firm Herbert Smith LLP. "Regardless of what a contract may say between a bank and a borrower, it may be that there are greater political considerations that have an impact."
June 2007 seems like ages ago now. Getting this deal done has been like pulling teeth.
At these prices it seems as if the probability of the deal closing is 0%, I like going long those kind of odds.
Posted by: Scott | October 10, 2008 at 02:25 PM
I was lucky enough to get in at US$23.01, so hopefully I'm in good shape regardless what happens...over the long term, that is.
Posted by: John | October 10, 2008 at 04:45 PM