BCE proposed acquisition of GLENTEL does not include a de minimis cash consideration component

In the proposed BCE acquisition of GLENTEL for ½ of a BCE share or cash of $26.50, per GLENTEL share at the GLENTEL shareholder’s option (but with the overall consideration being fixed on essentially a 50-50 basis), a GLENTEL shareholder potentially could receive only share consideration, so that the s. 85.1 rollover would be available. This contrasts with other offerings (e.g., First Quantum/Lumina and Loblaw/Shoppers Drug Mart) where a minimum (and somewhat nominal) cash consideration was specified, so that all target shareholders wishing rollover treatment would be required to make a s. 85 election.

In addition to posting a "Tax Instruction Letter" on its website, BCE will provide the letter to a duly requesting shareholder by email.

Neal Armstrong. Summary of GLENTEL Circular under Mergers & Acquisitions – Mergers – Shares for Shares or Cash.