MONTREAL, Quebec, Oct. 19 /PRNewswire-FirstCall/ -- BCE Inc. ("BCE") today announced that 5,918,209 of its 8,000,000 Cumulative Redeemable First Preferred Shares, Series S ("Series S Preferred Shares") have been tendered for conversion, on a one-for-one basis, into Cumulative Redeemable First Preferred Shares, Series T ("Series T Preferred Shares"). Consequently, BCE will issue 5,918,209 new Series T Preferred Shares on November 1, 2006. The balance of the Series S Preferred Shares that have not been converted will remain outstanding.
The remaining 2,081,791 Series S Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbol BCE.PR.S. The holders of the Series S Preferred Shares will continue to receive a monthly floating adjustable cash dividend as and when declared by the Board of Directors of BCE.
The Series T Preferred Shares will pay on a quarterly basis, for the five-year period beginning on November 1, 2006, as and when declared by the Board of Directors of BCE, an annual fixed dividend based on a fixed rate of 4.502%. The Series T Preferred Shares will be listed on the Toronto Stock Exchange under the symbol BCE.PR.T and should start trading on a when-issued basis at the opening of the market on October 23, 2006.
On October 11, 2006, BCE announced that as part of its proposal to convert Bell Canada into an income trust and related transactions (collectively, the "Arrangement"), BCE intends, directly or indirectly, to make a cash offer to repurchase the Series S Preferred Shares not tendered for conversion and the Series T Preferred Shares to be issued on November 1, 2006. The cash offer for the Series S Preferred Shares would be at $25.60 per share. The cash offer for the Series T Preferred Shares would be at $25.75 per share. Completion of these repurchases will, as with respect to the planned repurchases of the other outstanding preferred shares of BCE and Bell Canada, be conditional upon completion of the Arrangement. If the Arrangement is not completed, then BCE will not repurchase any of the Series S Preferred Shares or the Series T Preferred Shares.
BCE has received an opinion from BMO Capital Markets that, as of October 11, 2006, the consideration to be offered to the holders of the Series S Preferred Shares and the Series T Preferred Shares of BCE under the proposed tender offer to be made in connection with the Arrangement is fair, from a financial point of view, to those preferred shareholders.
About BCE Inc.
BCE is Canada's largest communications company. Through its 28 million customer connections, BCE provides the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Under the Bell brand, the Company's services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services. Other BCE businesses include Canada's premier media company, Bell Globemedia, and Telesat Canada, a pioneer and world leader in satellite operations and systems management. BCE shares are listed in Canada, the United States and Europe.
