Potential BCE Takeover - Insight please

minnie_me

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I've been watching the potential BCE takeover with great interest as I own shares. Is there anyone here who can share some insight as to what current shareholders should expect?

Once it goes private, will all shareholders be expected to sell their shares, hence, we will no longer be shareholders of BCE and will have to look for another investment(s) to park our money?

Or, will we be able to retain our shares but in a private company? If so, what does that mean from a valuation and dividend perspective.

Any insight would be appreciated.
 
BCE Privatization

Minnie,

If BCE does go Private there will be an offer made to shareholders. You can decide to tender (sell) your shares to the offer or not. The offer, in a privatization will be all cash. If you do not tender your shares, and the offer is unsuccessful you keep your shares. If the offer takes up (buys) more than 90% of the outstanding shares there are rules in place to automatically force the sale of the remaining shares.

You will now have cash with no interest in BCE any longer.

Hope this helps... there are many possible variations however to these deals, so my advice above may not be what actually happens.

JB
 
Thanks guys. This is helpful. I guess the next question is what I should put the money in that is similar to BCE. Perhaps another Telco? Rogers?
 
People are picking up Telus in anticipation that they might be a take over target. But in the long run Rogers has the edge as a growth stock. If your interested in a smaller take over you might consider Husky Injection. It is now public that it will be sold currently selling in mid $7.00 range. It will probably be taken out at just over $8.00 per share. Another take over target is CAE. Currently selling for $13 and change. Have fun. GB
 
great bear said:
People are picking up Telus in anticipation that they might be a take over target. But in the long run Rogers has the edge as a growth stock. If your interested in a smaller take over you might consider Husky Injection. It is now public that it will be sold currently selling in mid $7.00 range. It will probably be taken out at just over $8.00 per share. Another take over target is CAE. Currently selling for $13 and change. Have fun. GB

Most likely Telus will not be a take over target, rather, there is a chance that BCE and Telus will merge. Take a look at Telus stock in the last week, interesting. I am happy to say I have a considerable postion in Telus and I am HOLD for now.
 
minnie_me said:
Thanks guys. This is helpful. I guess the next question is what I should put the money in that is similar to BCE. Perhaps another Telco? Rogers?

Telus, Rogers, MTS (Manitoba), Shaw, and Yellow Pages are all up. If you wish to remain in this sector, Shaw went up the least and would probably be best. Other sectors that are still going up are metals/minerals (due to China), and oil (driving season is just around the corner).
 
great bear said:
People are picking up Telus in anticipation that they might be a take over target. But in the long run Rogers has the edge as a growth stock. If your interested in a smaller take over you might consider Husky Injection. It is now public that it will be sold currently selling in mid $7.00 range. It will probably be taken out at just over $8.00 per share. Another take over target is CAE. Currently selling for $13 and change. Have fun. GB


Ahhh, CAE. I remember flipping this stock when it was trading in the $5 - $6 range. In hindsight, I should have taken a hold strategy on this puppy.
 
minnie_me said:
Ahhh, CAE. I remember flipping this stock when it was trading in the $5 - $6 range. In hindsight, I should have taken a hold strategy on this puppy.
Their flight simulators are selling like hotcake in middle-east & China. Air travel is expected big growth in those markets. With Feds offering Aerospace funding, put thems at level playing field globally.