TORONTO and LONDON – Labour leaders and Bell Canada debenture holders are finding they share a common cause: They oppose the sale of Bell Canada.
Granted, their reasons for their opposition are at opposite ends of the spectrum, but it could make for an interesting shareholders meeting come September 21, where shareholders are expected to accept the Ontario Teachers Pension Plan-led deal to take the massive telco private.
Wednesday, Bell Canada debenture holders announced they had formed ad hoc committees "in response to prejudice from proposed reorganization," reads the press release.
"The ad hoc committees of holders of Bell Canada debentures issued under the trust indentures dated July 1, 1976, April 17, 1996 and November 28, 1997 have been formed in response to the proposed leveraged buy-out and Plan of Arrangement announced by Bell Canada and its parent, BCE Inc. (collectively, "Bell"). It is the position of the committees that holders of these debentures have been and will be materially prejudiced by the proposed reorganization announced by Bell," adds the release.
"The committees have retained experienced restructuring, litigation and corporate securities counsel in Ontario and Quebec and a leading financial advisor from New York. The legal teams include ThorntonGroutFinnigan LLP, Fasken Martineau DuMoulin LLP and Fishman Flanz Meland Paquin for the 1976 and the 1996 committees and McMillan Binch Mendelsohn LLP for the 1997 committee.
"The committees are investigating all of the debenture holders’ alternatives, rights and remedies," it adds.
A public conference call is scheduled for Monday for the debenture holders to chat. The public will be allowed to listen, however.
Meanwhile, in London today, a rally was held to protest Bell’s plans to outsource jobs and cut some benefits for retirees as it proceeds towards privatization. "The CTEA understands that the issues of outsourcing and removal of benefits is a growing problem that is faced by all working Canadians. We stand in opposition to the prevailing corporate attitude that endangers livelihood of all Canadians," says the Canadian Telecommunications Employees Association’s press release.
However, Bell is pursuing outsourcing and retiree benefit cuts before the bid to buy it.
