OTTAWA – Canada’s highest court ruled on Friday that the planned $52-billion leveraged acquisition of BCE can go ahead.
The Supreme Court of Canada decision was made public at 4:30 p.m. ET, but without any reasons given. They will be released within six months.
Some disgruntled Bell bondholders were trying to block the deal, and had successfully convinced a Quebec Court of Appeal to rule in their favour. But the Supreme Court overturned the Appeal Court’s decision and paved the way for a consortium, including the Ontario Teachers Pension Plan, to acquire Bell Canada’s parent company.
As requested by BCE, the judicial system fast tracked the case because of a June 30 deadline upon which the parties could walk away from the agreement.
The bondholders argued that the deal was detrimental to them because BCE was taking on $34 billion in debt under the deal.
The Bell Canada debenture holders issued a statement, saying they are “disappointed that the court disagreed with them on the merits," but "they believe they had a duty to protect the interests of their clients in contesting the plan of arrangement.”
A notice on the Ontario Teachers Pension Plan website stated it was pleased with the Supreme Court’s decision and it is continuing to work toward completing the acquisition of BCE.
