RE: not overThis deal expires at midnight 11-Dec-2008. After that, who knows what would happen. A new price and closing date could only be entertained after the current deal expires or is terminated pre-maturely and break fees paid. Other offers (even from the same consortium) may then come in. Not before. A different price and different terms requires shareholder ratification.
In this market however, I suspect the board would advise shareholders to wait 2-5 years for conditions to improve. Then BCE may fetch $45 to $50 in the future. In the mean time, we would be paid to wait (dividend). Yes, the stock price will languish and do nothing for more years. But this is a utility not a high-flying tech company with no dividends.
BTW, this will go nowhere: https://www.globeinvestor.com/servlet/story/RTGAM.20081127.wrbce28/GIStory/
KPMG accountants know insolvency when they see it and will not be easily swayed by BCE's definition of solvency. They are not going to risk losing Citigroup as a client and getting sued by them to boot if they say something is solvent when its not.
For all intents and purposes, as BCE's asset values stand now, the deal will not transpire. Its a shame the board extended the closing date by 5 months to December back in July. 30-60 days would have been more apporpriate. And they NEVER should have given OTPP consortium the key to the house without first having paid for it in full.
Shareholders will likely sue BCE for that because they never consulted them on the 5-month delay and allowing OTPP consortium to take possesion without paying. As the anger swells watch for massive class action lawsuits. News of such suits, with or without merit, is likely to lower BCE stock price.
Also BCE will have to pay OTPP consortium $800M break-fee for not delivering to them a solvent company by 11-Dec-2008. I don;t believe the deal makes a provision for whether declining value of BCE's assets are in its control or not. BCE will be in default of the terms and have to pay. I'm not sure if the market has factored that into the $25.23 price it closed at today. If not, that's another $1 you can knock off per share.