BCE Inc.: Bondholders Versus Shareholders Supreme Court Showdown? Harvard Case Solution & Analysis

In the month of May 2008, the board of directors of BCE. Inc. (BCE), one of Canada's leading integrated communications companies, was coping with the side effect of a preceding day's Quebec Court of Appeal judgement. The court had ruled to disallow a $50 billion privatization deal as, based on the court, the procedure was flawed and didn't consider the debenture (bond) holders of Bell Canada (a wholly-owned subsidiary of BCE).

The court had lined the board let a deal in which gains had accrued solely to the investors (a 40 per cent increase in value since the company was in play) at the expense of the bondholders, who were dealt an 18 per cent decline in value over an identical period of time. In determining whether to start a last ditch appeal to the Supreme Court of Canada, management and the board needed to decide who were the key stakeholders involved in the choice to take the company private, what their interests were, and how those interests should direct the board.

PUBLICATION DATE: October 21, 2009 PRODUCT #: 909N27-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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