BCE Inc. announced on March 11, 2000 that it has sweetened its $2.3 billion takeover bid for CTV Inc. and that it has locked up the support of the CTV Board and Electrohome Broadcasting Inc. (Electrohome), CTV’s largest shareholder with 12 per cent of CTV stock.
BCE has entered into a Support Agreement with the CTV Inc. board whereby the Company agreed to recommend to its shareholders acceptance of a $38.50 bid, an increase of 50 cents, as well as to pay to BCE Inc. a customary break-up fee of $70 million if the board withdraws support from the BCE offer, which is contingent on more than 50 per cent of CTV shares being tendered. Electrohome has agreed to be bought outright by BCE for $270 million, or $32.17 per share.
As mentioned in the March edition of Lexpert, Stikeman Elliot is acting for BCE Inc. in the acquisition. The Stikeman Elliott team is composed of Jean Marc Huot, Marie-France Nantel, Sydney Isaacs, Benoît Dubord and Frédéric Harvey of the Montreal office, Marvin Yontef and Robert Nicholls of the Toronto office and Gregory Kane and Stuart McCormack of the Ottawa office. Borden Ladner Gervais LLP’s Toronto office represents Electrohome Broadcasting Inc. Alfred Page coordinated the BLG team with input from new partner Frank Allen (M&A), Brian Keith (Corporate) and Larissa Tkachenko (Tax). Goodman Philips & Vineberg is acting for CTV with a team that includes Dale Lastman, Jeff Singer, David Matlow, Kathryn Robinson, Jennifer Bol, Neil Sternthal and Chantal Thibault. Leonard Glickman, Peter Marrone, Paul Stein, Lawrence Weinberg, and Lawrence Wilder of Cassels Brock & Blackwell LLP have been retained to act for the special committee of CTV’s Board of Directors on the bid.