Canadian Stocks Extend Decline on Takeover Concern; BCE Shares Retreat

(Bloomberg) -- Canadian stocks fell, extending a
benchmark index's worst week since the September 20001 terror
attacks, as investors concerned about a worsening housing market
in the U.S. sold riskier assets.

Commodity shares such as Canadian Natural Resources Ltd.
retreated on speculation that demand may drop in the U.S. BCE
Inc., target of the largest buyout, retreated after Citi
Investment Research cut its recommendation on the stock, citing
growing risks to its financing.


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TD Bank to chip in C$3.8 bln for BCE takeover

(Reuters) - TD said it has underwritten C$3.3 billion of a C$34.3-billion credit facility and also provided a C$500 million equity bridge facility to the buyout consortium, which is led by the Ontario Teachers' Pension Plan Board.




The consortium, which includes U.S. private equity firms Providence Equity Partners Inc. and Madison Dearborn Partners, LLC, was declared the winner of a bidding contest for BCE on June 30 with a C$34.8 billion all-cash offer.


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Canadian Telephone, Materials Stocks Gain on Heightened M&A Speculation

(Bloomberg) -- Canadian telephone and materials
stocks including Telus Corp. advanced for a second day after
takeover speculation was fanned this week by the acquisitions of
BCE Inc. and Aur Resources Inc.

Energy producers such as EnCana Corp. fell on declining
natural-gas prices, while financial companies including Bank of
Nova Scotia retreated on concern that the Bank of Canada may
raise borrowing costs next week.


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UPDATE 1-Teachers group wins C$52 bln race for BCE

(Reuters) - It said that was a 40 percent premium over what it called
the "undisturbed share price," or the price before BCE put
itself up for sale. BCE shares closed at C$40.34 on the Toronto
Stock Exchange on Friday.




"The all-cash transaction is valued at C$51.7 billion,
including C$16.9 billion of debt, preferred equity and minority
interests," BCE said, adding that it expected the deal to close
in the first quarter of next year.


Read more at Reuters.com Mergers News

Canadian Stocks Fall, Led by BCE, as Telus Pulls Bid; Gold and Oil Decline

(Bloomberg) -- Canadian stocks fell after Telus Corp.
declined to bid for BCE Inc., sending shares of the country's
biggest phone company on their steepest plunge since November.

Such commodity producers as Barrick Gold Corp. and Suncor
Energy Inc. slid along with prices for gold and crude oil.
Financial companies advanced, led by Royal Bank of Canada, as
investors switched from the more volatile commodity stocks to the
perceived safety of banks and insurance shares.


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UPDATE 1-Telus says it won't bid for rival BCE

(Reuters) - Telus, which said last week it was in talks to explore
buying BCE and trumpeted the benefits of such a union, said in
a statement there were problems with BCE's bid review process.




"The inadequacies of BCE's bid process did not make it
possible for Telus to submit an offer," Vancouver-based Telus,
Canada's No. 2 telecoms firm, said.


Read more at Reuters.com Mergers News

Canadian Stocks Slip as Investors Await Merger Developments: Encana Falls

(Bloomberg) -- Canadian stocks fell as investors
awaited further developments on the potential takeovers of two of
the nation's biggest companies, Alcan Inc. and BCE Inc. Such energy
companies as EnCana Corp., among the biggest advancers yesterday,
declined.

Investors may decide to lock in gains today, said Fred
Ketchen, managing director of equity trading at Scotia McLeod Inc.
in Toronto.


Read more at Bloomberg Stocks News

UPDATE 1-Canada opposition parties worried over BCE/Telus

(Reuters) - No. 2 phone company Telus says it is in talks to explore
the acquisition of bigger rival BCE and says the deal could
result in significant synergies.




The Liberal party -- which together with two other
opposition parties control Parliament -- said it feared the
Conservative government of Prime Minister Stephen Harper might
take an ideological pro-market approach to the deal.


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Telus in talks to buy Canada telecom BCE

(Reuters) - - At current prices, BCE has a market capitalization of about C$32.3 billion. Telus, Canada's no. 2 phone company, has a market cap of C$11.6 billion.




-In the key wireless business, BCE has 5.82 million subscribers and Telus has 5.1 million.


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UPDATE 2-Canada's BCE says might combine with rival Telus

(Reuters) - MONTREAL, June 20 - BCE Inc. , Canada's
largest telecoms group and a possible target of three
international buyout bid groups, said on Wednesday it was in
talks to explore the possibility of combining with rival Telus
Corp. .




Any merger between BCE, which owns Bell Canada, and Telus,
the country's No.2 phone company, would stun Canada's telecom
industry and need government approval as it would control much
of the domestic telephone market.


Read more at Reuters.com Bonds News

UPDATE 2-KKR, pension funds in talks to take BCE private

(Reuters) - Shares of BCE jumped 6.6 percent, or C$2.39, to C$38.65 on the Toronto Stock Exchange soon after the market opened. The stock has leapt more than 25 percent since March 28.

BCE, which has a market value of about C$29.3 billion , has long been one of Canada most widely-held companies, and taking it private would amount to the country's biggest buyout.


Read more at Reuters.com Mergers News