The biggest takeover in the history of Canada has collapsed as the worldwide financial crisis deepens and top banks struggle for their survival. A group which was being lead by Ontario Teachers Pension Plan Board had agreed to buy BCE that owns Bell Canada. The takeover was worth US $ 27.8bn but the deal collapsed as the banks that had agreed to provide the funds are no longer able to do so.
Citigroup, Royal Bank of Scotland and Deutsche Bank had agreed to provide the largest share of funding. Lets us wait and see how the events unfold. The Royal Bank of Scotland was rescued by the UK government that pumped nearly 20bn pounds in it to ensure its survival. US government has to make sizeable investment in Citigroup to keep it intact. There are already newsreports that the present economic situation may continue till 2010 and it will worsen in the coming days.
The biggest takeover in the history of Canada has collapsed as the worldwide financial crisis deepens and top banks struggle for their survival. A group which was being lead by Ontario Teachers Pension Plan Board had agreed to buy BCE that owns Bell Canada. The takeover was worth US $ 27.8bn but the deal collapsed as the banks that had agreed to provide the funds are no longer able to do so.
Citigroup, Royal Bank of Scotland and Deutsche Bank had agreed to provide the largest share of funding. Lets us wait and see how the events unfold. The Royal Bank of Scotland was rescued by the UK government that pumped nearly 20bn pounds in it to ensure its survival. US government has to make sizeable investment in Citigroup to keep it intact. There are already newsreports that the present economic situation may continue till 2010 and it will worsen in the coming days.
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