The Public Sector Pension Investment Board has dropped out of the consortium bidding for BCE, according to a newspaper report.

The Globe and Mail reports that the Ottawa-based fund was expected to contribute a few hundred million dollars of the expected $5.5 billion the group needs to buy the telecom company.

The vying for BCE includes the Canada Pension Plan Investment Board, the Caisse de dépôt et placement du Québec and private equity firm Kohlberg Kravis Roberts & Co.

The newspaper also reports that the Ontario Teachers’ Pension Plan is contacting provincial pension funds and company retirement plans for its bid.

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