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Technology Stocks : Nortel Networks (NT)
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To: mtnlady who wrote (4476)1/27/2000 1:02:00 AM
From: Master (Hijacked)  Read Replies (1) of 14638
 
Lady, this might clarify the reason for the spin-off...Keep in mind that BCE has several other companies in its holdings whose value is not reflected in BCE's current price (probably because they are living in the shadow of the Gorilla which NT has become)

Master
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MONTREAL, Jan 26 (Reuters) - Canadian telecoms giant BCE Inc. (Toronto:BCE.TO - news) said on
Wednesday it has its sights set on growth after it completes a planned spinoff of a 37 percent stake in
communications equipment maker Nortel Networks Corp.(Toronto:NT.TO - news)

In a telephone conference call with reporters, BCE President and Chief Executive Jean Monty said that
spinning off the group's roughly C$77 billion ($53 billion) stake in Nortel will help ''unlock'' some C$30
billion of unrealized value in BCE's assets. Monty said BCE's stock has been trading at a roughly C$30
billion discount to the value of its underlying assets. That represents a discount of about C$47 a share,
he said.

''With shares that more properly valued, BCE can grow and expand its business using BCE stock as
currency for acquisitions,'' Monty said.

Monty said the group has no immediate plans to spin off other parts of its telecoms empire, which
includes Canada's largest telephone carrier Bell Canada.

BCE Chief Financial Officer William Anderson said BCE had applied to Canadian authorities for an
advance tax ruling on the proposal. ''We are highly confident that we will receive the tax ruling to justify
the transaction. We expect to have that ruling before the end of February,'' Anderson said.

Anderson said he foresaw no immediate tax on BCE or its shareholders arising from the plan. BCE has
roughly 500,000 shareholders and is considered Canada's most widely held company.
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