GLOBAL - $48.5bn deal for BCE the largest ever

The investment arm of the Ontario Teachers' Pension Plan, Teachers Private Capital, has joined forces with Providence Equity Partners and Madison Dearborn Partners to acquire BCE, Canada's largest telecom group. The $48.5bn price-tag will make it the largest buyout ever undertaken. The consortium will pay $40.13 a share, a premium of 6% above the stock's closing price on June 29, and will fund the deal with a $15.9bn debt package. Following the deal, Teachers Private Capital will increase its holding from 6% to 52%, with Providence holding 32%, Madison Dearborn 9% and other Canadian investors 7%. Canadian law requires telecom assets be majority owned by Canadian concerns. The Ontario Teachers' Pension Plan is one of the very few pension funds with its own dedicated private equity arm, making the deal unique by virtue of more than just its size.