Friday, November 21, 2008

Teachers' bid for BCE inspires confidence?

With 21 days until the ostensible closing date of December 11th, and the shares of BCE commanding a whopping $34.33 at today’s closing, this implies a whole lot of risk about this transaction ever closing as advertised at $42.75.

The current price implies a compound annualized rate of return of 4,526%

What do you suppose the market is telling us? That pigs fly?

1 comment:

Dr Mike said...

What`s with this dog anyway??

Is this not the poster boy Flaherty used for tax leakage as he slaughtered income trusts & their investors??

This was perhaps the most poorly managed company in this country & still is as evidenced by it`s current market price.

Their pension fund even has a shortfall of just over 3 billion dollars--a truly nice fit for Teacher`s with their pension loss of 6 billion.

If I was Teacher`s , I sure would be leery adding another clunker to my portfolio.

Dr Mike Popovich.