Ontario Teachers "pleased" with BCE court ruling

Fri Jun 20, 2008 5:11pm EDT
 
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TORONTO (Reuters) - Ontario Teachers' Pension Plan is "pleased" with the Supreme Court of Canada's ruling in favor of telecoms company BCE Inc (BCE.TO: Quote), a spokeswoman for the pension plan and its partners in the planned leveraged buyout said on Friday.

The Supreme Court reversed a Quebec appeal court decision in favor of BCE's bondholders.

"We're pleased with the Supreme Court decision, as you can imagine, and we're continuing to work to complete an acquisition of BCE," spokeswoman Deborah Allan said.

She said she could not comment on whether the deal would close by the buyers' previous target of June 30.

"Our hurdle was this decision, and we were glad to hear it this afternoon," she said.

Allan also declined to comment on the status of financing for the C$34.8 billion ($34.1 billion) deal, which is being led by Ontario Teachers' Pension Plan and includes Providence, Madison Dearborn Partners, and a private-equity arm of Merrill Lynch & Co Inc MER.N.

In a separate release, the large banks lending to the group of buyers said they stand behind their original commitment to the BCE transaction, and are negotiating financing documents in good faith.

($1=$1.02 Canadian)

(Reporting by Lynne Olver; Editing by Frank McGurty)

 
<p>A telephone booth is seen outside the offices of BCE Inc. in Montreal, June 20, 2008. REUTERS/Shaun Best</p>