Canadian Pension Plan Wins Telecom Bid (largest takeover in Canadian history)

[Omaha Steve]

Source: Associated Press

Canadian Pension Plan Wins Telecom Bid

Saturday June 30, 11:46 AM EDT

TORONTO (AP) — BCE Inc., Canada's largest telecommunications company, said Saturday it has reached an agreement to be bought by a group led by the Ontario Teachers Pension Plan for C$51.7 billion (US$48.5 billion), in the largest takeover in Canadian history.

The Ontario Teachers Pension Plan Board in cooperation with U.S.-based Providence Equity Partners and Madison Dearborn Partners, LLC won out over several other bidders in a cash deal that will take the company private, BCE said in a statement.

"It is gratifying to see that BCE's Board of Directors shares our vision for this initiative, and we are honored to lead the largest buyout transaction in Canadian corporate history," Jim Leech, senior vice-president of Teachers' Private Capital, the investment wing of the pension plan, said in the statement.

The pension plan was BCE's largest shareholder with a 6.8 percent stake. Leech noted that the plan has been a major BCE shareholder since the early 1990s.


Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d8q37m781&

[PSPS]

1. Why on earth would a telecom company be owned by a "pension plan?"

[CHIMO]

2. Lots

Of money to be made.

[Canuckistanian]

3. This ain't no ordinary "pension plan"

The Ontario Teachers Pension Plan is HUGE, practically a financial institution in itself.

They now own major shares in several companies and represent a huge voting block.

And my wife is a member (Ontario teacher for 25 years).

[Captain Angry]

5. Isn't the OTP a majority owner of the Maple Leafs NHL team?

I seem to remember reading that somewhere.

[nealmhughes]

4. The same reason that the Alabama School Teachers Pension Plan own 51 Wall St.

and 7 golf courses/resorts.

For the same reason the Teamsters bankrolled Las Vegas: there are more ways to invest than just bonds and stocks, and blue chip companies and money making ventures that are a near-guarantee upon investment is better than gold, especially telecoms and real estate.

[Sen. Walter Sobchak]

7. This is going to be a dismembering

Their media properties are worthless,
Their satellite service is poor to begin with and has more pirates that subscribers,
Their wireless network is antiquated and they are bleeding customers to Telus and Rogers AT&T,

Their only secure business is the landline,

The Ontario Teachers Pension Plan is really something, their Real Estate enterprise Cadillac Fairview is going to launch an invasion of California and Arizona in the next few years, we have had some dealings with them. Real sharks.

[Lisa]

8. Rick Mercer slammed them a while back ...

Something about anti-union practices at a meat processing plant they owned, out West? I wonder if this might be the clip (can't play video on this computer so I can't check).

http://www.cbc.ca/mercerreport/backissues.php?season=1

I had no idea that the OTPP was into Cadillac Fairview, but somehow I'm not surprised. Actually my dad's a retired teacher, so his money is likely involved too (though I don't know how closely tied the OTPP is to our local teachers' credit union in town).

[MrPrax]

6. Well since they good for 52 billion dollars?

Maybe the Pension fund can kick something towards the 6.2 million shortage in the Ottawa-Carlton School District budget so they don't have to call their schools funny corporate names