BCEBCETo Consider Strategic Alternatives for BCE Teleglobe
via CDS
April 8, 2002
BCE Inc. announced that BCE Teleglobe's new management is conducting a thorough review of Teleglobe's operations and existing business plans and will provide BCE with an updated outlook for the company.
In connection with the new management team's analysis, and in light of the expected continued weakness in the global data and long distance telecommunications sector for the foreseeable future and the general turmoil in the industry as evidenced by the restructuring of many of Teleglobe's competitors, BCE has undertaken a full review of all of its strategic alternatives regarding Teleglobe. This review will not affect Teleglobe's customer servicing which will continue to operate as per normal course.
BCE will update investors on Teleglobe, the strategic alternatives it may be considering including, but not limited to, a reassessment of its on-going funding under Teleglobe's current business plan and the possibility of renegotiating or restructuring Teleglobe's debt. BCE will also outline the impact, if any, of the strategic alternatives on BCE's annual financial guidance, on April 24th, 2002, when it releases its first quarter results.
BCE re-confirmed its previously announced guidance for the quarter. For the first quarter of 2002, BCE expects revenue between C$5.1 billion and C$5.4 billion; EBITDA between C$1.75 billion and C$2.0 billion; and net earnings per share (excluding non-recurring items) between C$0.34 and C$0.37.
BCE is Canada's largest communications company. It has 23 million customer connections through the wireline, wireless, data/Internet and satellite services it provides, largely under the Bell brand. BCE leverages those connections with extensive content creation capabilities through Bell Globemedia which features some of the strongest brands in the industry - CTV, Canada's leading private broadcaster, The Globe and Mail, Canada's National Newspaper and Sympatico-Lycos, the leading Canadian Internet portal. As well, BCE has extensive e-commerce capabilities provided under the BCE Emergis brand and serves international customers through BCE Teleglobe, a global connectivity, content distribution and Internet hosting company. BCE shares are listed in Canada, the United States and Europe.