Bells are ringing

20 June 2008 By Lauren Silva

The Supreme Court ruling will allow the buyout of the Canadian giant to stagger on. But in some ways, it still marks the end of an era. The $52bn buyout was announced near the bitter finale of the LBO boom. Deals that big won’t be seen again for years.

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Canada's BCE won the backing of the Supreme Court of Canada to proceed with the world's biggest leveraged buyout. The overturned a Quebec Court of Appeal decision that said plan did not take into account of the interests of existing bondholders.

If the bondholders lost, they are set to launch a second court challenge over the structure of the deal which gives Teachers control even though pension rules cap their voting control at 30%, the Financial Post reported.

Citigroup, Deutsche Bank, Royal Bank of Scotland and TorontoDominion Bank, the four banks which have committed to financing the debt portion of BCE said in a statement that they expect that the transaction will close in accordance with the definitive agreement between BCE and the sponsors.

We continue to negotiate the financing documents in good faith with the sponsors and stand behind our original commitment to the transaction, the banks said.

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We continue to negotiate the financing documents in good faith with the sponsors and stand behind our original commitment to the transaction, the banks said.

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