on time for the December 11 closing. PWC says they are prepared to produce the solvency report. To satisfy the contract by the closing date all that Teaches has to do is engage PWC and BCE approve. If KPMG has already stated they can't get the job done on time.
be new escape clauses of LBO world Karen Mazurkewich and Barry Critchley, Financial Post Published: Wednesday, November 26, 2008
It's the clause that appears to be scuttling the deal.
A "solvency clause" is rare in Canada, but it is threatening to kill the $52-billion BCE buyout deal by Providence Equity Partners, Madison Dearborn Partners, the Ontario Teachers' Pension Plan and Merrill Lynch.
*********** BCE announced that its auditor KPMG does not expect to deliver a solvency opinion on the scheduled date of BCE's closing on Dec. 11, 2008, **********
and it looks like it may be the final nail in the coffin for a deal that has leapt numerous hurdles including a nasty legal fight with the bondholders.