Well, that’s a long headline, but I want to make sure nobody misses it!
In a press release issued today, BCE stated:
BCE also announced today that it will not move forward with the planned conversion into an income trust announced by the company on October 11, 2006. However, the company is continuing with previously announced plans to simplify its corporate structure and eliminate BCE’s holding company operations. As part of this process, BCE intends, at its next annual shareholders meeting, to change its name to Bell Canada Inc. and will have two operating businesses: Bell and Bell Aliant Regional Communications. Bell Canada also intends to change its name to Bell Inc. at the same time.
Under a plan of arrangement, and as part of the corporate simplification process, holders of Bell Canada preferred shares will be asked to exchange their shares for BCE preferred shares with the same series rights. The arrangement will also provide for a one-time special dividend of $0.20 per Bell Canada preferred share outstanding immediately prior to the exchange. The arrangement must be approved by the holders of common and preferred shares of Bell Canada, each voting as a class, at a special meeting to be held on January 23, 2007.
The previously announced offer is therefore cancelled. The market hadn’t been taking it too seriously anyway.
To summarize:
- There is no longer an offer for: BCE.PR.R, BCE.PR.S, BCE.PR.Y, BCE.PR.Z, BCE.PR.A, BCE.PR.C.
- There is no longer a cash offer for: BC.PR.B, BC.PR.C, BC.PR.E (or for the Series 15, BC.PR.A; or for the Series 16, BC.PR.D; which are not tracked by HIMIPref™)
- There is now an exchange offer with a special dividend sweetener for: BC.PR.B, BC.PR.C, BC.PR.E (and for the Series 15, BC.PR.A; and for the Series 16, BC.PR.D; which are not tracked by HIMIPref™)
Update: DBRS has confirmed the ratings of Bell Canada at Pfd-2, and of BCE at Pfd-2(low), removing them from review. They had been placed under review October 11.
[…] It has been announced that the Bell Canada / BCE Inc. Preferred Share Exchange Offer has been approved: The face of telecom company BCE Inc. took another step towards being wiped from the Canadian business landscape after Bell Canada shareholders approved exchanging its preferred stock for BCE shares and accepting a one-time payout of 20 cents per share. … Shareholders representing 61.5 per cent of Bell Canada preferred stock voted 95.26 per cent in favour of the moves. A couple of investors who attended the meeting voted against the motion, but later refused to explain their decision or reveal whom they represented. […]
[…] A more aggressively pro-shareholder stance by BCE will not lead to another offer for the preferreds – if anything, such an event will be less likely. I bet the old Bell Canada pref holders are now feeling a little blue : they voted to switch to an inferior credit for a trivial consideration and this could be nasty. […]
[…] has the following preferred shares outstanding: BCE.PR.A, BCE.PR.C, BCE.PR.D, BCE.PR.E, BCE.PR.F, BCE.PR.G, BCE.PR.H, BCE.PR.I, BCE.PR.R, BCE.PR.S, BCE.PR.T, BCE.PR.Y […]
[…] has the following preferred shares outstanding: BCE.PR.A, BCE.PR.C, BCE.PR.D, BCE.PR.E, BCE.PR.F, BCE.PR.G, BCE.PR.H, BCE.PR.I, BCE.PR.R, BCE.PR.S, BCE.PR.T, BCE.PR.Y […]
[…] has the following preferred shares outstanding: BCE.PR.A, BCE.PR.C, BCE.PR.D, BCE.PR.E, BCE.PR.F, BCE.PR.G, BCE.PR.H, BCE.PR.I, BCE.PR.R, BCE.PR.S, BCE.PR.T, BCE.PR.Y […]
[…] has the following preferred shares outstanding: BCE.PR.A, BCE.PR.C, BCE.PR.D, BCE.PR.E, BCE.PR.F, BCE.PR.G, BCE.PR.H, BCE.PR.I, BCE.PR.R, BCE.PR.S, BCE.PR.T, BCE.PR.Y […]
[…] has the following preferred shares outstanding: BCE.PR.A, BCE.PR.B, BCE.PR.C, BCE.PR.D, BCE.PR.E, BCE.PR.F, BCE.PR.G, BCE.PR.H, BCE.PR.I, BCE.PR.R, BCE.PR.S, BCE.PR.T, BCE.PR.Y […]