RE: Bad OmenYes, because a takeover between the world's largest mining companies at a time when commodity prices have completely crashed and we're in a global recession is somehow comparable to an LBO of Canada's largest telecommunications company.
Even by your standards, pep, that was pretty stupid. Obviously BUD would be a closer analogy. Funny how you don't mention that deal - and other tech deals - closing.
Trust me - your cellphone and satellite TV bills won't be going down. They'll be going UP. And while it's not exactly toothpaste or Kraft dinner, it's a lot closer to recession-proof than not. The last thing people will cut out is their cellphones, Internet, and TV. Those are all relatively inexpensive entertainment devices. So it's a question of WHO they will use to get those services from - not if they will get them. Nobody I know is going to cancel their cell phone, TV, or Internet because of a recession or worse. You can cut back on many other things. Aside from food, shelter, healthcare, and education - communications has become an essential.
While I'm sure Teachers isn't thrilled about the price they are paying given the current conditions, had the deal closed much earlier (without bondholder lawsuits, etc), Teachers would have been in the exact same position they find themselves today. Their models are based on the long-term (not the short-term).
What some people don't seem to understand is that this deal is about INCOME STREAM. Pension funds have obligations to meet. OTPP's are huge. There are precious few companies that can deliver the kind of relatively stable annual income stream of the size that BCE can. If this deal falls through, a few years from now someone else will take BCE out (albeit at potentially a lower price).