DJ Suit/BCE, Others -3: Class Action Allegations >BCICF BCE
Harvey Strosberg said the class action alleges that BCE Inc. (BCE), Bell Canada International Inc. (BCICF) and Bell Canada International's directors acted "oppressively,
were unfairly prejudicial to and unfairly disregarded" the interests of the holders of the 6.75% debentures.
He said that, on Feb. 15, Bell Canada International retired the debentures by issuing about 911,211,546 Bell Canada International common shares it valued at about 27
Canadian cents a share. On the same day, he said Bell Canada International issued and sold about 3 billion common shares to existing shareholders, under recapitalization
transactions, at about 14 Canadian cents a share, raising about C$441 million.
The class action also alleges that the recapitalization plan, implemented on Feb. 15, was designed to permit BCE to maintain control of Bell Canada International at the
least cost.
Strosberg said "the decision by BCE, and by (Bell Canada International) and its directors to sell common shares to BCE and others at 14 Canadian cents each while retiring
the debentures by issuing and valuing the same common shares at 27 Canadian cents each, was in my opinion, unfair, unreasonable, unwarranted and unjustifiable."
Strosberg said the plaintiffs allege that BMO Nesbitt Burns was negligent in the performance of services and in the expression of its opinions.
As reported, Bell Canada International's recapitalization plan was formed in December to enable it to meet short-term funding commitments.
Bell Canada International is a communications company focused on South America. It's a subsidiary of BCE, a major telecommunications company.
-Judy McKinnon, Dow Jones Newswires; 416-306-2100
(END) DOW JONES NEWS 04-29-02
10:56 AM |
