
BCE, Aliant to form giant telecom company CBC \|\| March 08, 2006 BCE Inc. and Atlantic Canada's Aliant Inc. are joining forces to form one of the biggest telecommunications giants in North America. The new entity will be set up as an income trust that will run telephone and internet operations throughout Atlantic Canada, Ontario and Quebec. The new income trust will combine Aliant's telephone services in Atlantic Canada with Bell Canada's telephone lines in Ontario and Quebec, giving the new entity 3.4 million telephone lines and 400,000 high-speed internet subscribers. The proposed BCE-Aliant venture will have its own head office and unitholders, making it the third-largest telecom entity in Canada behind parent BCE Inc. and Telus Corp. The new trust will also have 9,000 employees, 8,000 of them from Aliant, and annual revenue of about $3.2 billion. BCE Inc. is the Montreal-based parent of Bell Canada, while Aliant covers the Atlantic provinces from its head office in Saint John, N.B. The head office will remain in Atlantic Canada. BCE already controls Aliant through a 53.2 per cent shareholding. BCE's share will rise to 73.5 per cent after the deal, leaving Aliant with the remaining 26.5 per cent. BCE plans to reduce its stake to 45 per cent over time through a distribution to BCE shareholders. But BCE clearly intends to remain in charge. Article Posted at www.KnowledgeDrivenRevolution.com "The trust will be a significant core asset for BCE, with its business closely aligned with that of Bell Canada for the long term," BCE said in the announcement. BCE expects to ratify the deal in the third quarter. It requires the approval of Aliant shareholders, the Canada Revenue Agency, the CRTC, the federal Competition Bureau and the courts. The approval of BCE's shareholders is needed for the second part of the announcement, the subsequent distribution of trust units. The two providers do not expect any change in services, prices or brand names. The new trust will offer customers the same products and bundles as before, under the Bell and Sympatico brands in central Canada and Aliant and DownEast brands in Atlantic Canada. The two companies do not expect any layoffs. Forbes defended the formation of an income trust in his statement, saying telephone lines are ideally suited for income trusts because they provide stable and predictable cash flows for their shareholders. The new structure also allows BCE to include its 63.4 per cent interest in the Bell Nordiq Income Fund and $1.25 billion of BCE's debt. Aliant stock (TSX:AIT)surged 28 per cent after the news, rising $8.05 to $36.76 in early trading on the Toronto Stock Exchange. BCE stock (TSX:BCE)gained 3.3 per cent, up 92 cents to $28.50. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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BCE, Aliant to form giant telecom company

CBC || March 08, 2006

BCE Inc. and Atlantic Canada's Aliant Inc. are joining forces to form one of the biggest telecommunications giants in North America.

The new entity will be set up as an income trust that will run telephone and internet operations throughout Atlantic Canada, Ontario and Quebec.

The new income trust will combine Aliant's telephone services in Atlantic Canada with Bell Canada's telephone lines in Ontario and Quebec, giving the new entity 3.4 million telephone lines and 400,000 high-speed internet subscribers.

The proposed BCE-Aliant venture will have its own head office and unitholders, making it the third-largest telecom entity in Canada behind parent BCE Inc. and Telus Corp.

The new trust will also have 9,000 employees, 8,000 of them from Aliant, and annual revenue of about $3.2 billion.

BCE Inc. is the Montreal-based parent of Bell Canada, while Aliant covers the Atlantic provinces from its head office in Saint John, N.B.

The head office will remain in Atlantic Canada.

BCE already controls Aliant through a 53.2 per cent shareholding. BCE's share will rise to 73.5 per cent after the deal, leaving Aliant with the remaining 26.5 per cent.

BCE plans to reduce its stake to 45 per cent over time through a distribution to BCE shareholders. But BCE clearly intends to remain in charge.

Article Posted at www.KnowledgeDrivenRevolution.com

"The trust will be a significant core asset for BCE, with its business closely aligned with that of Bell Canada for the long term," BCE said in the announcement.

BCE expects to ratify the deal in the third quarter. It requires the approval of Aliant shareholders, the Canada Revenue Agency, the CRTC, the federal Competition Bureau and the courts.

The approval of BCE's shareholders is needed for the second part of the announcement, the subsequent distribution of trust units.

The two providers do not expect any change in services, prices or brand names. The new trust will offer customers the same products and bundles as before, under the Bell and Sympatico brands in central Canada and Aliant and DownEast brands in Atlantic Canada.

The two companies do not expect any layoffs.

Forbes defended the formation of an income trust in his statement, saying telephone lines are ideally suited for income trusts because they provide stable and predictable cash flows for their shareholders.

The new structure also allows BCE to include its 63.4 per cent interest in the Bell Nordiq Income Fund and $1.25 billion of BCE's debt.

Aliant stock (TSX:AIT)surged 28 per cent after the news, rising $8.05 to $36.76 in early trading on the Toronto Stock Exchange. BCE stock (TSX:BCE)gained 3.3 per cent, up 92 cents to $28.50.

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