BCE Inc said on Wednesday it will pay C$3.95 billion ($3.68 billion) to take regional affiliate Bell Aliant private, securing access to its cash flow and bolstering BCE's position as Canada's largest telecom company.The deal for the 56 percent of Bell Aliant that BCE doesn't already own comes as the telecom industry braces for the possible emergence of a fourth national wireless company, a key goal of the federal government's telecom policy."This makes sense given that the regulators are looking to fight consolidation at every turn," said Ryan Bushell, a portfolio manager at Leon Frazer, which holds shares in both companies. "It makes sense to bring it all up to the bottom line for BCE, and it helps support their dividend."BCE's move should protect its dividend growth profile for another year or two even if its wireless business is hit by competitive turbulence, Desjardins analyst Maher Yaghi said in a note.
Bell Aliant Inc. through its subsidiaries is a regional communications service provider. Shares of BA traded higher by 11.1% or $3.13/share to $31.32. In the past year, the shares have traded as low as $24.79 and as high as $29.05. On average, 290714 shares of BA.TO exchange hands on a given day and today's volume is recorded at 8638384.
BCE Inc. is a communications company, providing residential, business and wholesale customers with a range of solutions to all their communications needs. Shares of BCE traded higher by 1.07% or $0.49/share to $46.17. In the past year, the shares have traded as low as $40.02 and as high as $46.70. On average, 564425 shares of BCE exchange hands on a given day and today's volume is recorded at 379970.
BCE Inc. is a communications company, providing residential, business and wholesale customers with a range of solutions to all their communications needs. Shares of BCE traded higher by 1.16% or $0.57/share to $49.58. In the past year, the shares have traded as low as $41.28 and as high as $51.09. On average, 964092 shares of BCE.TO exchange hands on a given day and today's volume is recorded at 1525059.
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