In coming to its conclusion, KPMG assessed the value of BCE’s future liabilities and assets that have eroded with the market meltdown.īCE’s underfunded pension liabilities are believed to be one of several challenges faced by the Montreal company.Įlliott Soifer, vice-president of Desjardins Securities International, said he doubts the deal can be salvaged by altering terms, including the $42.75 purchase price.īut industry observers believe Teachers’ and the consortium of banks are likely delighted by the KPMG opinion because it potentially clears a path to extricate themselves from a tightly written deal that was signed when market conditions were much brighter. KPMG indicated BCE meets solvency tests under its current capital structure – but would not after being weighted down with the debt involved in the proposed takeover.

After falling to $23, they closed at $25.25, a drop of $13.10 or 34.16 per cent on the Toronto Stock Exchange. Shares in the company were hammered down in heavy trading to their lowest level in six years. (when the takeover is slated to close), the transaction is unlikely to proceed.” The opinion marked the latest hurdle for the $52-billion cash and debt deal, the largest takeover in Canadian history.īCE said it disagrees, but “should KPMG be unable to deliver a favourable opinion on Dec. (BCE) said Wednesday a KPMG analysis indicated the company could not meet solvency tests in the agreement under which the company will be acquired by an investor group led by the Ontario Teachers’ Pension Plan. The Canadian Press is reporting BCE says Teachers’ buyout ‘unlikely to proceed’ if solvency opinion not improved.īell Canada’s roller coaster ride to privatization may finally crash under the weight of its prospective massive debt after an accounting firm raised serious doubt that the world’s largest leveraged corporate buyout could succeed.īell parent BCE Inc.

Fallout shelter acquired plans