TSE:BCE

BCE Inc. (BCE.TO)

29.29
-0.40 (1.35%)
as of Sep 28, 2026, 2:30:43 pm Market Open.
2008 watching
0
BUY
To be acquired by Ontario Teachers at $42.75. Takeout date is speculated as May 1st. This would amount to a very generous rate of return. There would be serious consequences if they were to back out of the deal. Risk/reward is good.
BUY
Clearly there is a ton of concern about the ability to fund the deal. He thinks the deal is going to get done. There is enough evidence that there is enough will on both sides to get it done. A Buy, but wait until the smoke clears.
BUY
His guess is that even if the deal did not go through, someone else would pick it up for a similar price. If you can afford a little bit of stall, he would be tempted to buy it.
COMMENT
The streets as they will do the deal even if they have to choke it down as that's the Canadian way. His model price is $24.82, a 33% negative differential. Seeing deterioration all over in the Telcos.
COMMENT
Seems to be trading in a range. The current consensus is that the stock will be taken over after April. The longer it takes the more likely the stock will go lower.
BUY
He thinks the drop in the stock price is just a bit of panic selling. The whole arbitrage area has been quite volatile right now. Commitments from the buyers are pretty strong that the deal is going to happen.
BUY
The only question is, will the takeover take place. If the deal goes through, this is a no-brainer. You gain 10% on the stock plus a dividend. On the other hand, if the funding falls apart, then the stock probably goes down to $32.
BUY
Would be very surprised to see the deal renegotiated. The big risk is a regulatory one.
SELL
The market seems worried about this one and when it worries, he worries. His attitude is, reduce. Take some profits.
BUY
Doesn't feel the deal is likely to fall apart and will probably be completed in the 1st half of this year. Teachers have said that they will stand behind it.
PAST TOP PICK
(A Top Pick Dec 15/06. Up 30.7%.) Now starting to get a little nervous.
BUY
Will be taken over at $42.50 whenever the deal closes plus you get a dividend.
COMMENT
Arbitrages play based on it being taken out at $42.75. Two risks. 1) Bondholders have been hard done by and are in the courts now trying to redeem their bonds. 2) Have to go through regulatory authorities. Chances are, it will go through and return would be about 8%-9%, which annualized would be about 30%.
TOP PICK
Very high probability that the deal wit the Ontario Teachers Pension gets done in February. Risk/reward for getting the $42.75 by the end of April is very good and gives a 9% to 10% return.
BUY
Thinks the deal with Ontario Teachers Pension will go through. If this is true, you are looking at a 12% pickup plus one dividend in a fairly short period of time.
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