03:42 PM EST - BCE Inc. : reports that that American private equity firm Cerberus Capital Management LP is in the hunt to take over Canada's largest telecommunications enterprise. The parent company of Bell Canada said Wednesday that Cerberus - which on May 14 struck a US$7.4-billion deal to buy 80 per cent of U.S. automaker Chrysler - "is entering into discussions to explore the possibility of taking the company private." BCE's brief statement said the Cerberus bidding consortium includes a group of Canadian investors, who were not named. New York-based Cerberus, or any other foreign bidder, would need one or more Canadian partners because of federal legislation that places an effective 46.7 per cent limit on foreign ownership of a domestic telephone company. The Canada Pension Plan Investment Board previously declared an interest in buying BCE, as part of a group which also includes the Caisse de depot et placement du Quebec, the federal Public Sector Pension Investment Board and U.S. leveraged-buyout firm Kohlberg Kravis Roberts and Co. BCE Inc.
shares BCE:CA are trading up thirty one cents at $39.06.
