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To: re3 who wrote (88391)	12/23/1999 5:31:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Ike, are you following this? Why in the hell did you not tell us about Bce? I have Nortel, and totally missed Bce! << Toronto, Dec. 23 (Bloomberg) -- Shares of TeleClone Inc., which represent a bet that BCE Inc. stock will outperform Nortel Networks Corp., more than doubled in the past two days on speculation BCE will spin off its 39.6 percent Nortel stake. TeleClone is marketed as a way for investors to wager on BCE minus its Nortel stake. Its share price climbs if BCE stock rises more than Nortel's or drops less. BCE shares have risen 5 percent since Wednesday, when newspapers reported that Canada's biggest telecommunications company sought a tax ruling to help it determine whether to spin off the Nortel stake. BCE's market value, company officials claim, doesn't reflect its full value. Since Wednesday, Nortel stock has fallen 0.1 percent. Shares of TeleClone today rose C$3.25 (US$2.11), or 54 percent, to C$9.25 in Toronto. They're up from C$3.55 Tuesday. ``TeleClone is up because BCE is up,' TeleClone Chief Executive Edward Collins said in an interview. ``The market's expectations are that BCE will spin off Nortel.' TeleClone's rebound is welcome news for investors after a Nortel stock surge in October almost forced TeleClone to wind up its business. TeleClone touched a low of C$1.51 on Nov. 19. Until yesterday, BCE's market value was about equal to the value of the company's interest in Nortel, meaning investors were getting BCE's other assets, including Bell Canada and a 22 percent stake in long-distance carrier Teleglobe Inc., for nothing. (The spinoff of Nortel) could happen as early as the first quarter of next year,' said Jonathan Robinson, an analyst at National Bank Financial in Toronto. TeleClone's portfolio consists of a 5.25 million-share short position in Nortel shares -- a bet that Nortel stock will drop -- and about 6.2 million BCE shares. BCE hasn't said it will spin off its Nortel shares, said Jean-Charles Robillard, a BCE spokesman. ``All we've said is that this is one option we are looking at,' Robillard said. Dec/23/1999 16:10 >>