Journal les Affaires Translated (post508)
Ran it thru Altavista translator for those 'international investors' that can't read French.
Jean Monty has already targeted the subsidiary companies of company BCE has to develop - Stéphanie Grammond
Fasten your seat belts! The integrator of information processing systems Groups CGI (Mtl, GIB.A, 32, 50 $), the specialist electronic commercial BCE Emergis (Mtl, IFM, 35,75 $) , BCE Media (satellites and television) could see quadrupling their value before long. These three subsidiary companies of BCE (Mtl, BCE, 68,55 $) all are indicated to benefit from a good portion of the 5,1 billion $ that BCE will obtain, in May, when the sale of 20 % of Bell Canada in Ameritech is concluded.
" These three divisions could have credits of 20 billion $ within five years, that is to say comparing that value being equivalent of Bell Canada in this moment ", projected Jean Monty, president and head of the direction of BCE, in an interview granted to the newspaper the BUSINESSES. At present, the credits of CGI and BCE Emergis weigh 3,5 billion $ in the wallet BCE, while those of BCE Média amount to 1,1 billion $: BCE has already the option to carry current its-participation of 45 % in CGI in 56 % during next years. Moreover, CGI and BCE Emergis have projects of acquisition. These purchases could be financed by submission of new actions. BCE would then provide new capital to its subsidiary companies by maintaining its participation with even percentage. Before to distribute the kitty, BCE will have to soften the dilution of its benefit resulting from the transaction with Ameritech Bell Canada represented approximately 60 % of the profits of BCE. The sale of 20 % of Bèll Canada thus deprives BCE of 12% of its earnings per share. To counter the effect of dilution completely, BCE should repurchase approximately 50 M of its actions. With the current course of the title, approximately 70 $, it would be a total amount of approximately 3,5 billion . " it is clear that we will not repurchase the totality of these actions. We will take a few months to think of the scale of the program of repurchase. ", specified Mr. Monty. Prefering to invest in avenues with strong growth to propel the benefit of BCE.
This strategy is not without precedent. Last year, BCE announced investments of 2,9 billion $ in its various subsidiary companies, including 750 M$ for the development of Bell Nexxia; 328 m$ for the acquisition of Group CGI; 736 M$ in order to maintain its participation in Téléglobe (Mtl, TGO, 46,70$) during its merger with Excel, etc. In addition, BCE wants to also increase the complementaries between its many subsidiary companies in order to increase the value and to justify the existance of the holding.
Example? The repertory of the tradesmen, the Yellow Pages, which forms part of Bell Canada, will be found in Internet... CGI could be implied in the solutions of telecommunication. This electronic catalogue could become a vast virtual shopping centre., thus requiring the solutions of transactïon security of BCE Emergis. The transaction with Ameritech gives also new occasions of businesses to CGI and Téléglobe. On its side, Ameritech is in the process of amalgamating with SBC, a télécommun cator of the West and south of the Plain ones.
Some speculate àla possibility as that BCE and Rogers Communications (Mtl, Rd, 28,30 $) share their common competitor of mobile telephony Clearnet communications (Mtl, NET, 20,10 $), which has activities in Canada everywhere. Bell Mobility is not present in the Canadian West.
"We could take part in the dismemberment of a provider of services of mobile telephony, like Clearnet, but it would be an expensive alternative, one would speak about billion. (2nd is not our priority in the West ", answered Mr. Monty. To enter the West, BCE rather aim at the large business centres with the network with broadband of Nexxia. This network could extend to the United States. Bell Atlantic is not only one of the most frightening American competitors of Ameritech, but it is merged with GTE, itself a shareholder of BCI.Telus (MTL, BCT 37$), the Canadian adversary of BCE.M |
