What is Teachers learning about their bid to take Bell private? [Note to all grammar students: since Teachers is a proper noun, “Teachers” is singular – referring to the pension plan, as opposed to the collection of teachers – lower case – that would be treated in the plural]
Two months ago, I wrote that the markets were doubting Bell’s privatization would go through.
Talk about understatement.
At that time, Bell stock was trading at $39.40. Yesterday, it fell to 33 and change.
In November (when I decided to buy some – full disclosure), the yield was around 25%. Now, should the deal go through at the official offering price, the annualized yield will be over 100%.
The deal from Ontario Teachers Pension Plan is supposed to provide shareholders with $42.75 per share. There is likely another dividend to be received between now and closing, for a total of another 37.5 cents. Assuming the deal is finalized in April, each share is worth about $43 – nearly $10 more than yesterday’s price, for a return of better than 30% in 3 months.
Bell issued a statement in December to try to calm the markets. Any updates?