BCE, buyer group reach final agreement to complete buyout
Friday July 04, 2008 14:07:00 EDT

(RTTNews) - BCE Inc. (BCE, BCE.TO), Canada's largest communications company, said Friday that it has reached a final agreement with a buyer group led by the Ontario Teachers' Pension Plan to complete the C$35 billion buyout deal struck last June. BCE shares jumped more than 13% in intra-day trading on the Toronto Stock Exchange.

Under the final agreement that amends the definitive agreement signed in June 2007, the purchase price remains at C$42.75 per share, but the closing of the deal is delayed until December 11.

Also, the final agreement increases the reverse break fee from C$1 billion to C$1.2 billion to be paid by the purchasers if the deal falls through and prevents BCE from paying dividend on its common shares. However, it allows the company to continue t (continued...)