MONTREAL – Bell Canada Enterprises’ Strategic Oversight Committee confirmed today what’s been rumored since last week, that another group is looking at taking the country’s largest telecom company private.
Members of this new group, headed by American private equity firm Cerberus Capital Management (the same company buying Chrysler) "have signed non-disclosure and standstill agreements with BCE on a non-exclusive basis," says today’s BCE press release.
Besides Cerberus, the also Canadian investors. Printed reports over the past few days suggest a number of partners, such as Shaw Communications and CanWest Global.
According to Canadian telecom regulations, majority ownership of the company must rest in Canadian hands.
BCE had previously announced its intention to review all strategic alternatives and the review is currently expected to be completed in the third quarter of 2007.
While the release says "no assurances can be provided that any offer, if made, by any bidding group, now formed or to be formed in the future, will be accepted by the board of directors or that this review of alternatives will result in any specific action being taken by the company," most expect a sale will happen.
