BCE Inc T.BCE

If accurate could bode well for BCE issues

[Ocalaman]

Blackstone and Apollo Global Management are currently engaged in a competitive bidding process for a significant investment in Rogers Communications' wireless infrastructure. Here are the key details:

• Bidding Amount: Blackstone is reportedly bidding C$7 billion (approximately $5.03 billion) for a minority stake in Rogers' cell phone infrastructure business, specifically targeting its wireless backhaul network
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• Current Status: This bid positions Blackstone as the "mystery investor" previously speculated in various reports, indicating a strategic move into telecommunications infrastructure, which is seen as a vital asset in the evolving digital landscape
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• Market Context: Both Blackstone and Apollo are shifting their focus towards investment-grade assets, moving away from their historical roles in distressed debt. This shift includes providing substantial financial support to established firms and targeting larger, more resilient enterprises
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  . Blackstone has been particularly active in this space, facilitating around $38 billion in financing during the first three quarters of 2024 alone
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This competitive landscape reflects broader trends in private equity where firms like Blackstone and Apollo are increasingly vying for stable, high-quality assets that offer potential for significant returns.

[flush777]

Sorry, I am unconvinced at this point of time ... Rogers is selling off its crown jewels and if BCE was to do the same, then we would be selling off both our crown jewels, our infrastructure AND our sports holdings. I am uncertain as to how the  market would feel. Rogers is apparently selling off one set of crown jewels, infrastructure, and purchasing our crown jewel, sports holdings. So

[Ocalaman]

Wouldn't you rather go from 9 to 7 because the price went up? Less painful than a wisdom tooth extraction without sedation. 

[flush777]

I just compared BCE and Rogers since Oct 25 infrastructure announced and BCE down 60 cents and Rogers down $2/share; so market does not like this financing?? https://www.stockwatch.com/News/Item/Z-C!RCI-3611465/C/RCI

[BlueDawn]

It's a tough sell the interest rate is 4.5% the roa for that 7B is closer to 9% so the delta is pretty significant.  The rev loss will hurt a few % points. im happy with the sale of the MLSE cause it wasn't returning much so the roa was low and the opportunity cost was just the capital appreciation of the asset in future.  However the asset has appreciated very well and