Court ruling puts BCE takeover in jeopardy

[CHIMO]

A lower court's decision to throw out a lawsuit by a group of bondholders intent on halting the $52 billion takeover of BCE Inc. has been overturned by the Quebec Court of Appeal, putting the country's largest ever buyout in jeopardy.

The parent of the country's largest phone company, Bell Canada, and the group of proposed buyers led by the Ontario Teachers' Pension Plan said late Wednesday that they intend to seek leave to appeal the decision to the Supreme Court of Canada.

"The judgment overturning the Québec Superior Court decision rewrites Canadian law relating to the duty of Canadian boards of directors to maximize value for shareholders in the context of a change of control transaction, as well as to the entitlements of bondholders in those circumstances," said Martine Turcotte, BCE's chief legal officer, in a statement.

"Both the transaction and the issues of law involved are of public importance in Canada. We believe the Supreme Court of Canada should reverse this decision, and allow the transaction to proceed."

http://www.thestar.com/Business/article/428462

Interesting decision. A fly in the water, or ginger?