RBS nationalized – good or bad for BCE LBO?
BCE Takeover Part 43
If the British government is essentially taking over The Royal Bank of Scotland (RBS:NYSE) via a 15 billion Pound equity infusion tomorrow morning, is this 1) good for the Ontario Teachers-led buyout of BCE, or 2) is it the death knell? With the new ownership structure will also come a new CEO, according to the WSJ. RBS is one of the four banks leading the buyout lending effort, along with Toronto-Dominion Bank, Citigroup and Deutsche Bank.
On the one hand, a restructured and stronger balance sheet makes it easier, in theory, for RBS to complete their part of the $52 billion LBO. On the other, does Teachers want to sue — in essence — the British Government if RBS walks away from their commitment to fund their portion of the buyout?
How many times have the folks leading the charge of the world’s largest would-be LBO woken-up in the morning and thought “now what”? Too many to count, I’m sure, and December isn’t even here yet.
MRM
(disclosure – I own BCE)
its not just the ‘folks leading the charge’ all of us BCE shareholders are wondering “now what”. if its any consolation during the dump everything panic last week lots of take overs were trading under the buy out prices. including BUD and the energy co CEG which is being taken over by W. Buffet.