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Gold/Mining/Energy : BCE Blue chip growth stock -- Ignore unavailable to you. Want to Upgrade?

To: Gold Panner who wrote (253)	4/16/2002 12:55:43 PM
From: CIMA	Respond to of 275

Teleglobe Noteholders Form Committee >BCE (djones) NEW YORK (Dow Jones)--U.S. and Canadian institutional investors holding a substantial portion of the U.S. and Canadian notes of BCE Inc. 's (BCE) Teleglobe unit have organized as an ad hoc committee to "review the situation" at Teleglobe. In a news release, Bingham Dana LLP said the noteholders have assembled in response to BCE's "troubling" press release issued on April 8 in connection with its Teleglobe operations, and the severe rating agency downgrades of about $1.2 billion of Teleglobe's notes. The committee has appointed law firm Bingham Dana LLP as its counsel. Bingham Dana said that, "to the extent BCE Inc. 's April 8 announcement implies the consideration of any possible course of action other than continued full support, the committee members will need to review their alternatives carefully in order to ensure that their interests as BCE Teleglobe public noteholders are properly preserved and protected." BCE Inc. , Montreal, is Canada's largest telecommunications company. Company Web Site: bce.ca -Wendy Tsau, Dow Jones Newswires; 416-306-2100 DOW JONES NEWS 04-16-02 11:37 AM Copyright (C) 2002 Dow Jones & Company, Inc. All Rights Reserved.

To: Gold Panner who wrote (253)	4/17/2002 3:48:33 PM
From: CIMA	Respond to of 275

Teleglobe bondholders team up, hire lawyer (gam) Bertrand Marotte MONTREAL -- U.S. and Canadian holders of Teleglobe Inc. bonds expressed concern yesterday that parent BCE Inc. could end up backing away from its commitment to the financially troubled overseas network provider. The investors, who collectively own more than $500-million (U.S.) of the total of about $1.2-billion in Teleglobe bonds, also said they have banded together in an ad hoc committee and hired a U.S. lawyer who is an expert in defending the interests of bondholders. In a brief news release, the bondholders characterized as "troubling" BCE's announcement last week that it will review all its options concerning Teleglobe, including a financial restructuring or even a reassessment of its funding of Teleglobe operations. The recent downgrading of Teleglobe debt to junk status is also a major concern, they said. The bondholders, speaking through the Boston-based law firm of Bingham Dana LLP, said they have "long viewed BCE Inc. and BCE Teleglobe as parts of the same integrated organization and have consistently relied on BCE Inc.'s numerous public statements as to its continuing intention to fully support BCE Teleglobe. "To the extent BCE Inc.'s April 8 announcement implies the consideration of any possible course of action other than continued full support, the . . . [bondholders] will need to review their alternatives carefully in order to ensure that their interests as BCE Teleglobe public noteholders are properly preserved and protected." BCE spokesman Don Doucette said he could not comment on the formation of the group or the worries it has voiced, other than to say: "This sort of initiative is not unusual in circumstances like this, where a review is under way." Evan Flaschen, head of the restructuring practice at Bingham Dana, said in an interview he anticipates more bondholders will join the group as word gets out. Mr. Flaschen already represents a group of AT&T Canada bondholders, whose debt has been trading at a fraction of its original value. He said it's too early to say what exactly the Teleglobe bondholders will do. "We believe BCE made commitments to Teleglobe and we're hopeful they'll be able to confirm these commitments," he said. BCE, which does not guarantee any of its subsidiaries' debt, could theoretically walk away from Teleglobe. But analysts say such an aggressive move would hurt the reputations of BCE and chief executive officer Jean Monty in financial markets, and is probably not the preferred option, although it would be welcomed by shareholders fretting about Teleglobe's continued drag on BCE's share price. Rather, analysts see BCE going the restructuring route, which would involve tough negotiations with its bondholders and banks, who have equal footing as main creditor groups of Teleglobe. Under one scenario, BCE would offer bondholders 20 cents on the dollar, some cash and new BCE bonds carrying 50 cents on the original dollar of face value, Dvai Ghose, senior telecom analyst at CIBC World Markets Inc. in Toronto, said recently. Teleglobe also has a $1.25-billion credit line due in July to a syndicate of banks. Mr. Doucette said BCE is on track to update investors on its strategy for Teleglobe next Wednesday. BCE has kept Teleglobe afloat with more than $2.5-billion (Canadian) in funding since acquiring the 77-per-cent stake in it that it didn't already own, about 17 months ago.

To: Gold Panner who wrote (253)	4/24/2002 11:34:18 AM
From: CIMA	Read Replies (2) \| Respond to of 275

Monty resigns, Teleglobe left to sink or swim, BCE up over $4 today: BCE Cuts Funds to Teleglobe, Chief Executive Quits By Robert Melnbardis MONTREAL (Reuters) - Jean Monty, chief executive of BCE Inc. (Toronto:BCE.TO - news), Canada's largest communications group, quit on Wednesday as the company pulled its funding lifeline to Teleglobe Inc. and forecast a second-quarter charge of up to C$8.5 billion to write down the investment. Investors cheered the news, sending BCE up 16 percent or C$3.90 to C$26.90 at the opening bell on the Toronto Stock Exchange. BCE was once the second most valuable stock on the exchange but has slumped to eighth because of the woes at Teleglobe and concerns about other underperforming areas. BCE said it expects Teleglobe to seek a merger or debt restructuring. Failing that, Teleglobe may have to consider a "court-supervised proceeding." In unexpected announcements that also raised the prospect of a restructuring of the $2.7 billion of debt at voice and data network provider Teleglobe, BCE also said it would raise an estimated C$1.5 billion ($955 million) to C$2 billion by securitizing its directories business. Analysts said that generally amounts to pooling and selling receivables, an inexpensive way of providing funds. The company said Monty, who masterminded the Teleglobe takeover, would be replaced by Michael Sabia. "It's obvious that BCE has gone through a difficult period with Teleglobe, but it is important that we turn the page in all respects," Monty said. The meeting and conference call, billed as a forum to discuss the company's first quarter earnings, instead focused on the plan to effectively abandon Teleglobe, which BCE bought full control of two years ago for C$7.4 billion. "This decision is based on a number of factors, including: Teleglobe's revised business plan and outlook with associated funding requirements; a pragmatic assessment of Teleglobe's prospects; and a comprehensive analysis of the state of the industry," BCE said in a statement. Analysts had said BCE would do well to walk from Teleglobe as the company also has many other concerns on its plate, including its money losing e-commerce business BCE Emergis (Toronto:IFM.TO - news) and South American mobile phone network operator Bell Canada International Inc. (Toronto:BI.TO - news). MARKET WELCOMES BCE PLAN ON TELEGLOBE BCE said its board reaffirmed its commitment to maintaining the company's common share dividend at C$1.20 a year. "We view the news as very positive," Bob Hastings, analyst at Raymond James in Vancouver, told Reuters. "The other thing is that with the dividend being safe, the stock should be a lot higher from where it is, on a yield basis alone," he added. The 4.7 percent-yielding dividend is one reason why BCE has been known as a "widows and orphans" stock, safe enough for retail investors to tuck away in their pension funds and a key holding for big institutional investors. SBC Communications Inc. (NYSE:SBC - news), the No. 2 U.S. local phone company, owns 20 percent of BCE's Bell Canada unit, the country's largest phone company. SBC has a put option to sell back its stake to BCE in the second half of this year and 2004, something that could cost BCE up to an estimated C$7.5 billion and which is also affecting its share price. BCE said it will conditionally provide weekly funding to Teleglobe up to a maximum of US$100 million to US$125 million. BCE made the announcement on money-losing, debt-burdened Teleglobe while releasing first-quarter results that came in as forecast with a profit of C$301 million or 37 Canadian cents a share. Net earnings in the year-earlier quarter were C$887 million or C$1.10 a share, after a C$2.9 billion gain related mainly to the sale of shares of Nortel Networks Corp.(NYSE:NT - news). BCE said revenue was C$5.2 billion versus C$5.1 billion. The Montreal-based company had forecast a first-quarter profit of 34 to 37 Canadian cents a share, excluding charges or gains. That was an 8 percent decline an BCE's earlier forecast and compares with a profit of 38 Canadian cents a share in the year earlier quarter, excluding nonrecurring items. BCE on Wednesday revised its guidance for the second quarter and the full year, excluding Teleglobe. It said it expects second-quarter revenue of C$4.8 billion to C$5.1 billion and net earnings of 45 Canadian cents to 48 Canadian cents. For the full year, BCE expects revenues of C$19.5 billion to C$20.5 billion and net profit of C$1.80 to C$1.90 a share. ($1=$1.57 Canadian)