BCE Deal, Cable and Telecom, Quarterly Earnings

Overshadowing all other news including the Dow dropping 20% from its high, is the BCE takeover deal looks like it will happen as all obstacles have been overcome. Now the interesting part of the deal will be how Ontario Teachers and the private equity firms that will own BCE can turn a reasonable profit on the takeover.

With the deal likely to go through, there will be alot of cash that retail and institutional investors will need to reallocate.  When the deal was announced last year, the general consensus was that Telus (T)would benefit once the deal was done and that can still very well be the case. Other companies that show good value include the cable company Cogeco (CCA) while Rogers an Shaw should see some funds their way as well.

A couple of yield ideas if you want to look outside of North America include Deutsche Telekom (DT) and France Telekom (FTE). Dt has a dvidend yield of 7.5% while FTE is currently yielding 7.7%

Where do you think BCE investors will allocate funds once the takeover is done or do you think the deal will still fall through?

Quarterly earnings next week are being reported by Cogeco and Corus Entertainment on July 9th, Astral Media on the 10th and Canwest Global on July 11th.

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One Response

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