(For other news from the Reuters Global Finance Summit, click
(Adds quote in paragraphs 5-7, information from source in
paragraph 8, background to deal and market in paragraphs 9-end,
By Megan Davies
NEW YORK, Nov 12 Toronto-Dominion Bank (TD.TO)
Chief Executive Ed Clark said on Wednesday he remained
committed to financing the massive leveraged buyout of BCE Inc
(BCE.TO), Canada's biggest telecommunications company.
TD Securities, a unit of TD Bank, is among the banks that
have agreed to finance the deal alongside Citigroup (C.N),
Deutsche Bank (DBKGn.DE) and Royal Bank of Scotland (RBS.L).
There have been concerns about the C$34.8 billion deal
closing amid the turbulence in the financing markets. BCE
shares are significantly below the deal price of C$42.75 a
share and closed down 60 Canadian cents at C$37.30.
Clark, speaking at the Reuters Global Finance Summit in New
York, said TD Bank continues to support the transaction and
said, "I'm confident that we'll be there with our money" at the
"We're...old fashioned," he said. "When we say 'We're going
to do a deal,' we say, 'We'll do a deal.' You can't say, 'Well
it was a good idea at the time, but I don't like it anymore'."
But he said it was unlikely the debt would be syndicated
before the deal's close, adding it is tough to syndicate in
Clark said he did not see the deal as a "serious credit
risk". If the bank has to hold BCE debt until it matures, it
will, because it offers a high yield and the credit risk is
low, he added.
Separately, a source familiar with the situation said on
Wednesday the deal was on target to close as scheduled but it
was unlikely the debt would be syndicated before closing, due
to the market conditions.
BCE, which is being bought by a consortium that includes
the Ontario Teachers' Pension Plan, private equity firms
Providence, Madison Dearborn Partners and a private-equity arm
of Merrill Lynch & Co Inc MER.N, said in July that buyers had
finalized funding and it expected the deal to close by Dec.
Providence told its investors early in October that it
expected the deal to close and that the BCE business was
performing well, a source familiar with the matter told Reuters
in October. The comments were made during a presentation to the
investors in its funds, known as "limited partners," the source
said at the time.
For BCE, worries follow other private equity deal failures,
including the proposed takeovers of audio equipment maker
Harman International Industries Inc HAR.N, equipment renter
United Rentals Inc (URI.N) and student lender Sallie Mae,
formally known as SLM Corp SLM.N.
Another deal, the proposed $6.5 billion buyout of chemicals
firm Huntsman Corp (HUN.N) by Apollo Management LP's Hexion
Specialty Chemicals unit, is currently in litigation and one of
the points being argued about is the financing of the deal.
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(Additional reporting by Lynne Olver; editing by John
Wallace) ((firstname.lastname@example.org; +1 646 223 6112;