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  5. BCE: Is the recent deal by BCE in the USA "written in stone" or can it be cancelled by either party at this time. [BCE Inc.]
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Q: Is the recent deal by BCE in the USA "written in stone" or can it be cancelled by either party at this time. Looks like the deal has almost destroyed the co. Thanks
Asked by george on December 17, 2024
5i Research Answer:

If there is a legal purchase and sale agreement it is hard to get out of. Look at Musk and Twitter, for example, where Musk essentially had to buy it even though he probably didn't want to (he would have been sued). There is typically a 'market out' clause for a global catastrophe of some kind, but having BCE shares simply drift lower would not qualify for this. BCE could find something in its due diligence to get out, if it was material. Both parties could also agree to terminate the deal if they mutually wanted to.