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Tuesday March 7, 6:29 pm Eastern Time
Company Press Release
SOURCE: BCE Inc. Nortel Networks
Canadian Tax Ruling Received on Bce Distribution of Nortel Networks Shares
MONTREAL, March 7 /CNW-PRN/ - BCE Inc. and Nortel Networks(x) Corporation (NYSE/TSE:NT) have received an advance income tax ruling from the Canada Customs and Revenue Agency concerning the Canadian income tax treatment of BCE's previously announced plan to distribute an approximate 36% interest in Nortel Networks to the common shareholders of BCE.
The tax ruling confirms that the completion of the Plan of Arrangement will not result in any Canadian federal income taxes to BCE, its Canadian shareholders, who hold BCE shares as capital property, or to the Canadian shareholders of Nortel Networks, who hold their Nortel Networks shares as capital property. Similar rulings are being sought from certain provincial governments.
Meetings of shareholders of Nortel Networks and BCE are planned to be held in late April. The plan requires court approval and must meet other customary closing conditions. If all approvals are received, it is expected that the Plan of Arrangement will be implemented before the end of the second quarter, 2000.
BCE is Canada's largest communications company. Through its operations in communications services, BCE provides residence and business customers in Canada with wireline and wireless communications products and applications, satellite communications and direct-to-home television services, systems integration expertise, electronic commerce solutions, Internet access and high-speed data services, and directories. Abroad, through Bell Canada International's investee companies, BCE provides communications services to nearly 6 million customers in Asia and Latin America. BCE also has an extensive international presence through Teleglobe, an international telecommunications carrier. BCE shares are listed in Canada, the United States and Europe.
Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks(x) that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
(x) Nortel Networks, the Nortel Networks logo, the Globemark, Unified
Networks, and How the world shares ideas are trademarks of Nortel
Networks.
SOURCE: BCE Inc. Nortel Networks |
