TORONTO – The banks backing the $52-billion leveraged buyout of BCE Inc. are looking to renegotiate a lower per share price, according to media reports.
Some analysts say the banks, including Citigroup Inc., Deutsche Bank AG and Royal Bank of Scotland, were in a meeting Wednesday looking for $39.25 a share rather than the $42.75 originally agreed upon.
Numerous reports state the financiers and the buyers in the proposed purchase have “serious and significant disagreements” over some of the lending terms.
Skittish given the disastrous credit market and mounting bad loans, the banks are backtracking on lending money on the terms and conditions agreed to last year. The same banks have already gotten an 8% cut in the price for a private-equity buyout of American radio broadcaster Clear Channel Communications.
Reports say the banks could consider walking away, even if it means paying a $1-billion breakup fee.
Any new price would have to be approved by Bell shareholders.
BCE received other bad news on Wednesday, when a Quebec Court of Appeal turned down earlier rulings that sided with the telecom giant. BCE said it will take its fight with a group of disgruntled bondholders to the Supreme Court.
