Bell Canada to convert to income trust

MONTRÉAL - BCE announced today that it will eliminate its holding company operations and convert Bell Canada into an income trust.The trust, to be known as the Bell Canada Income Fund, is designed to create value for shareholders through increased cash distributions and to ensure there will continue to be competitive parity in the capital markets within the telecom sector, says the press release. The Trust will have an initial annual cash distribution of $2.55 per unit1, representing a targeted 2007 payout ratio of 85%.“The elimination of BCE is a further step in our plan to focus on Bell and our...