BCE shares rally after Citigroup bailout
(In U.S. dollars unless noted)
TORONTO Nov 24 (Reuters) - Shares of Canadian telecom giant BCE Inc (BCE.TO) jumped about 10 percent on Monday after the U.S. government agreed to bail out Citigroup Inc (C.N), one of the banks financing BCE's C$34.8 billion ($28.3 billion) buyout.
BCE shares shot up 9.9 percent, or C$3.41, to C$37.96 on the Toronto Stock Exchange after the U.S. government said it would inject $20 billion of new capital into Citigroup and agree to shoulder most of the potential losses on $306 billion of high-risk assets.
Montreal-based BCE, Canada's biggest telecom company, is being bought out by a group of private-equity investors led by the Ontario Teachers Pension Plan.
BCE's shares have long languished below the offer price of C$42.75 a share as investors fretted the deal could be repriced, delayed or abandoned altogether because of problems in the financial markets.
The deal is being financed by Citigroup, Deutsche Bank (DBKGn.DE), Royal Bank of Scotland (RBS.L) and Toronto-Dominion Bank (TD.TO).
The buyout is set to close by Dec. 11.
(Reporting by Wojtek Dabrowski; editing by Peter Galloway)
((firstname.lastname@example.org; +1-416-941-8009; Reuters Messaging: email@example.com)) Keywords: BCE/SHARES
(C) Reuters 2008. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN24516514
- Crimea votes to join Russia, Obama orders sanctions |
- Man called Bitcoin's father denies ties, leads LA car chase
- Apple loses bid for U.S. ban on Samsung smartphone sales
- Nine-month-old baby may have been cured of HIV, U.S. scientists say
- Exclusive: Russia wants IMF to move ahead on reforms without U.S. - sources