Canadian telecom company BCE said on November 26 it had received a preliminary view from KPMG that it wouldn't meet certain solvency criteria if it took on the debt required by an LBO deal agreed last December. Meeting the crteria is a condition to the closing the buyout led by Ontario Teachers Pension Plan and Providence Equity Partners, originally valued at $48.5bn.

KPMG said that BCE would meet all solvency tests with its current capital structure.

"We are disappointed with KPMG's preliminary view of post-transaction solvency, which is based on numerous assumptions and methodologies that we are currently reviewing”. said Siim Vanaselja, BCE's Chief Financial Officer. “The company disagrees that the addition of the LBO debt would result in BCE not meeting the technical solvency definition”.

The company said it will continue to work with KPMG and to seek to satisfy all closing conditions.

30 Sep 2008 -

Big gaps, huge risks

20 Jun 2008 -

Bells are ringing