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DealZone

Behind the deals and deal-makers

08:40 November 25th, 2008

BCE’s stock benefits from Citi saga

Posted by: Jessica Hall
Tags: DealZone, ,

One beneficiary of Citi’s massive bailout was BCE Inc, the massive telecoms company that is being bought in one of the last remaining leveraged buyouts to close.
Citigroup, alongside TD Securities, a unit of TD Bank Deutsche Bank and Royal Bank of Scotland, is financing the deal and the market has been nervous about the buyout cratering for months — evidenced by significant arbitrage spread.

One of the biggest worries for traders is the C$34.8 billion deal closing amid the turbulence in the financing markets.

But they gave the firmer footing for Citi a thumbs up and shares in BCE shot up 3.4 percent after the U.S. government agreed a bailout package for the bank.

(Reporting by Megan Davies)

One comment so far

Nice Move after all that has been going in the market….
Big CEOs make Big money on deals like this and normal people lose their jobs and live miserably ever after.

- Posted by Mike Goodman

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