The year-and-a-half-old, $43 billion BCE (Bell Canada) buyout attempt has ended. It was the biggest failed buyout in history. BCE’s auditor, KPMG, this week issued a final report that doomed the deal by saying the company would not be solvent if the deal were consummated. BCE’s shares are selling for almost half of the buyout offer.
The Ontario Teachers’ Pension Plan and several name-brand private equity firms led the attempt. The deal was contingent on a nationally recognized auditor determining the company’s solvency after the buyout. Citigroup and Deutsche Bank were the two banks raising the money for the deal.
BCE is expected to demand an $810 million breakup fee from the Ontario Teachers’ Pension Plan and the US private-equity firms that terminated the takeover.
Oh, well. Teachers may be better off without BCE shares and perhaps the company can focus on selling broadband and building a better network.