BCE has announced:
that in accordance with the terms of its articles, it has sent a conversion notice to the holders of its Series AA Cumulative Redeemable First Preferred Shares. A copy of this notice has been publicly filed by BCE on SEDAR.
It’s not entirely clear to me whether this release, dated July 13, refers to the Reminder Notice dated June 28. I think they had other things to worry about at that time!
Anyway … the conversion is effective September 1, 2007.
| Comparison of Terms | ||
| BCE.PR.A | BCE.PR.B | |
| Issued | 20-million | None |
| Dividend | Unknown – % of Canadas to be announced July 18, precise figure to be announced August 7 | Ratchet between 50% and 100% of Canadian Prime on par value |
| Teachers’ Bid Price | $25.76 | $25.50 |
I’ll post more on this as news trickles in. Most people will, I think, be better served by converting to ‘B’ …. the Teachers’ bid price is less, but not much less, but the dividends will probably be much greater in the event that the Teachers’ bid does not close.
It is interesting to note that BCE.PR.A is included in the S&P/TSX Preferred Share Index. Those who are historically inclined will remember that the long-dead Income Trust related offer bid 25.65 for BCE.PR.A.
[…] As previously discussed, the Teachers’ bid includes cancellation of BCE.PR.A (the fixed rate) for $25.76 and of BCE.PR.B (the ratchet rate) for $25.50. […]