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  5. BCE: With the Canadian dollar being so cheap and the share price so low, is a buyout of BCE possible? [BCE Inc.]
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Q: With the Canadian dollar being so cheap and the share price so low, is a buyout of BCE possible? Can Americans buy BCE or does it have to have Canadian ownership? I know the privatization attempt in 2007 failed in part because of the 2008 stock market crash. It could save a huge chunk of cash if it did not have to pay dividends. A company could take it private, clean it up and then take it public again with a much better balance sheet .
Asked by Murray on November 25, 2024
5i Research Answer:

There are certainly ownership restrictions: If telecommunications carriers, including Internet service providers, that own and operate transmission facilities hold a 10 per cent or greater share of Canada’s annual communications market revenues, they are subject to foreign investment restrictions including mandated Canadian ownership of 80 per cent of a company’s voting shares. As well, Canadians must hold 80 per cent of director positions and there must be no indirect control by non-Canadians. If the corporate investor is a subsidiary, the parent company must be incorporated in Canada and Canadians must hold a minimum of 66.6 percent of the parent company’s voting shares. While it could still go private, or a Canadian company could buy it, we would see this as quite unlikely in the current environment.