Telus has announced:
that it has elected not to submit an offer to acquire BCE as part of the strategic review process announced by BCE on April 17, 2007. The inadequacies of BCE’s bid process did not make it possible for TELUS to submit an offer.
… which could be mere posturing in order to get BCE to change their bid process, a reflection of regulatory problems … who knows? Pick your talking head, pick your explanation.
Ten year bonds for both companies widened 20bp on the news, perhaps reflecting the idea that now both will become LBO targets in shareholder-friendly ( = bondholder-hostile) events. But we will see!
I continue to think that BCE prefs are a crapshoot on credit right now and don’t want anything to do with them! There are, as yet, no words of wisdom from the ratings agencies.