The $52-billion BCE takeover bid is officially dead, according to the Ontario Teachers’ Pension Plan-led buyers group.
The deal fell through after accounting firm KPMG ruled two weeks ago that BCE wouldn’t pass a solvency test, a key condition of the agreement.
On Monday, PricewaterhouseCoopers contradicted KPMG’s report, saying that the telecom company would be solvent after the deal closes, but the damage was already done.
“Because KPMG has concluded that a required test for the solvency opinion was not met, this mutual condition to completion of the acquisition could not be, and was not, satisfied,” said the buyers group in a statement. “Accordingly, the purchaser terminated the agreement in accordance with its terms.”
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The group added that no termination fee is owed, but some analysts believe BCE may seek a break fee of up to $1.2-billion.
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