Attention Business/Financial Editors:
Distribution of Nortel Networks Interest to BCE Shareholders Effective Today
MONTREAL, May 1 /CNW/ - BCE Inc.'s distribution of a 35 per cent interest
in Nortel Networks to BCE shareholders is effective today. The distribution
will be calculated on the basis of 0.785193 of a Nortel Networks share for
every BCE share held. Since Nortel Networks will be splitting its shares on a
two-for-one basis effective at the close of business on Friday, May 5, BCE
shareholders will actually receive 1.570386 Nortel Networks shares for every
BCE share held.
``Since we announced the distribution of Nortel Networks in January, some
$10 billion in value, which was not previously recognized, has surfaced in the
BCE share price,'' said Jean C. Monty, Chairman and Chief Executive Officer of
BCE.
BCE will remain Canada's flagship communications company whose assets
include, or will soon include: Bell Canada, Teleglobe Inc., BCE Emergis, CGI,
Bell Canada International, BCE Media, Bell ExpressVu and CTV.
``Our focus over the past two years has been on building the scope of our
operations, particularly the creation of major growth engines such as BCE
Emergis and Bell Nexxia, and moving towards a more integrated operating
model,'' Mr. Monty said. ``Building on our strong base in Canada, we are now
positioned to accelerate our growth. Here in Canada, our business focus is to
provide our customers with information, communications and entertainment (ICE)
services. Internationally, through Teleglobe, we will pursue growth oriented
Internet and e-commerce opportunities via a global network that has direct
connections with businesses and carriers in 100 countries.''
The following are dates of note for trading in BCE shares on the Toronto
Stock Exchange:
May 1 Effective date of Plan of Arrangement
BCE begins trading on ``when issued basis'' ex of Nortel
Networks (TSE: BCE.W); BCE also continues to trade on a
``regular'' basis including the interest in Nortel Networks
(TSE: BCE)
May 2 Last day to trade BCE on a regular basis (including the value
of Nortel Networks) (x)
May 3 BCE shares begin trading ex-Nortel Networks only (TSE: BCE)
May 5 Record Date
May 8 Settlement of ``when issued'' trades
Beginning of mailing of Nortel Networks share certificates to
BCE shareholders
(x) The processing of trades on the TSE requires three trading days.
Those shareholders wanting to receive the Nortel Networks
distribution would therefore have to purchase BCE common shares no
later than May 2.
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.
Note:
Certain statements made in this press release, which describe BCE's
intentions, expectations or predictions, are forward-looking and are
subject to important risks and uncertainties. The results or events
predicted in these statements may differ materially from actual results
or events. Factors which could cause results or events to differ from
current expectations include, among other things: the risk that the
proposed acquisitions of Teleglobe and CTV will not be completed; the
Internet-economy growing at a slower pace than anticipated; risks of new,
or changes to existing, laws or regulations in jurisdictions where the
BCE group of companies operate and, in particular, changes in laws or
regulations governing Internet commerce; increasing competition; the
availability and cost of capital and the significant level of
expenditures required to maintain quality of service; the fact that there
can be no assurance that the BCE group of companies will be able to grow
through acquisitions; customer demand for traditional and emerging
services; the inability to further identify, develop and achieve
commercial success for new products, services and technologies; the
impact of rapid technological and market change; general industry and
market conditions and growth rates; international growth and global
economic conditions, particularly in emerging markets, including interest
rate and currency exchange rate fluctuations; the impact of
consolidations in the telecommunications industry; the opportunities (or
lack thereof) that may be presented to and pursued by the BCE group of
companies. For additional information with respect to certain of these
and other factors, see the reports on Forms 6-K and 40-F filed by BCE
with the United States Securities and Exchange Commission. BCE disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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