OTTAWA - The Supreme Court of Canada will rule Friday afternoon on whether the planned takeover of Bell Canada's parent company can go ahead.
Canada's top court will hand down its ruling on an appeal filed by BCE Inc. (TSX:BCE) and a group led by the Ontario Teachers' Pension Plan.
BCE and Teachers appealed a Quebec court decision that blocked the $52-billion leveraged buyout of Canada's largest telecom company.
The Quebec court had ruled that holders of BCE's bonds could challenge the takeover.
The bondholders say the deal would load $34 billion of debt on the company, reducing the value of their investment by at least $1 billion.
BCE's lawyers argued its board of directors had a fiduciary duty to maximize shareholder value, but no additional obligation to bondholders than what was contractually required.
