RE: Stepping up to the plate
Here is a few points which I think are accurate.
The OTPP is one of the very largest pension plans in Canada. With teachers living longer and now the ratio of working teachers to retired teachers getting smaler every year this is putting more pressure on the payout required from the plan. Indexation which is in place for retired teachers in the plan has come under fire for new teachers. With the weakness in the economy and lower interest rates OTTPP is running into more difficulty in aquiring enough cash flow from the plan to meet monthly payouts. In that case the government is required to kick in funds to support the plan. The Ontario and Canadian govt knows the cash flow the plan will get from the purchase of bce will make a huge difference so they will do whatever they can to support the buyout. I am sure the American govt. does noy want to see the two smaller American players risk going into bankruptcy if they are penalized the 1.2 BILLION penalty for not making their required contribution. There are a lot of big guns wanting the deal to go through on time especially because of the fiasco the dimwit Quebec appeals court caused. I think it is a bad time for OTPP to liquidate some resources but I am sure they would do that if they had to to ensure the buyout goes through. OTTP badly need their share of the huge annual cf from BCE. You can be sure their people (OTTP) now invoved in management there already have ways to reduce expenses and increase profitability ready to go with thr takeover of BCE.
best of luck al longs
thinking the deal is done
rob