Late last night the Quebec Court of Appeal put the kibosh on biggest buyout of all time, ruing that the sale of Bell Canada to a consortium of buyers led by the Ontario Teachers’ Pension Plan is unfair to bondholders. The deal was already under pressure from lenders who were balking at providing financing, demanding tough debt covenants and high interest rates.
Andrew Willis of the Globe and Mail’s Streetwise Blog points out that the Chinese walls at the investment banks working on the deal has produced a very strange result: the banks advising on the deal are the same ones who brought the lawsuit that now has placed it in peril.
Find out what happened after the jump.
What happened is that CIBC World Markets is advising Bell Canada. TD Securities is advising for the Ontario Teachers Pension Plan, and is also one of the lenders who have committed funding but are reportedly attempting to renegotiate. The lawsuit on behalf of the bond holders who want to stop the deal was brought by, among others, CIBC Global Asset Management and TD Asset management, the fund management units of those very same banks.
Deal Journal, which has been playing down the possibility that the deal could get scotched, is now admitting that maybe it’s time to panic. Lots of shares of Bell Canada are held by arbs, who will take a shellacking if the deal blows up.
Banks on both sides of BCE meltdown [Globe and Mail]
And that is why Canada is Canada.
Funny how Fortune runs a profile of this deal and then the deals blows apart. Coincidence?
Even funnier is that you admit to reading Fortune.
Terence and Phillip are at it again
You don’t have to read Fortune, you just need to glance at the cover on the news stand and then short accordingly when you get back to the office.
TD cut a pretty heft equity check as well.
Is CIBC still a going concern?
@ 4:48, CIBC has managed to bounce back from the huge damages they had to pay in the Enron civil suits.
Received via email
Memo: Cursing at Work
Dear Employees:
It has been brought to management’s attention that some individuals throughout the company have been using foul language during the course of normal conversation with their co-workers.
Due to complaints received from some employees who may be easily offended, this type of language will no longer be tolerated. Therefore, a list of 18 New and Innovative ‘TRY SAYING’ phrases have been provided so that proper exchange of ideas and information can continue in an effective manner.
Number 1
TRY SAYING: I think you could use more training.
INSTEAD OF: You don’t know what the f___ you’re doing.
Number 2
TRY SAYING: She’s an aggressive go-getter.
INSTEAD OF: She’s a f___ing bit__.
Number 3
TRY SAYING: Perhaps I can work late .
INSTEAD OF: And when the f___ do you expect me to do this?
Number 4
TRY SAYING: I’m certain that isn’t feasible.
INSTEAD OF: No f___ing way.
Number 5
TRY SAYING: Really?
INSTEAD OF: You’ve got to be sh___ing me!
Number 6
TRY SAYING: Perhaps you should check with…
INSTEAD OF: Tell someone who gives a sh__.
Number 7
TRY SAYING: I wasn’t involved in the project.
INSTEAD OF: It’s not my f___ing problem.
Number 8
TRY SAYING: That’s interesting.
INSTEAD OF: What the f___?
Number 9
TRY SAYI NG: I’m not sure this can be implemented.
INSTEAD OF: This sh__ won’t work.
Number 10
TRY SAYING: I’ll try to schedule that.
INSTEAD OF: Why the f___ didn’t you tell me sooner?
Number 11
TRY SAYING: He’s not familiar with the issues.
INSTEAD OF: He’s got his head up his a__.
Number 12
TRY SAYING: Excuse me, sir?
INSTEAD OF: Eat sh__ and die.
Number 13
TRY SAYING: So you w eren’t happy with it?
INSTEAD OF: Kiss my a__.
Number 14
TRY SAYING: I’m a bit overloaded at the moment.
INSTEAD OF: F__ it, I’m on salary.
Number 15
TRY SAYING: I don’t think you understand.
INSTEAD OF: Shove it up your a__.
Number 16
TRY SAYING: I love a challenge.
INSTEAD OF: This f___ing job sucks.
Number 17
TRY SAYING: You want me to take care of that?
INSTEAD OF: Who the f___ died and made you boss?
Number 1 8
TRY SAYING: He’s somewhat insensitive.
INSTEAD OF: He’s a pr_ck.
Thank You,
Human Resources
Is this the most ridiculous thing ever? LBO unfair to bondholders? Do they even understand voting rights? It’s a democracy, right? Bondholders have no rights.