Competition Bureau Clears Teachers-BCE Transaction

The following is a press release from the Competition Bureau, which is announcing it not be challenging the acquisition of Bell Canada Enterprises Inc. (BCE) by the bidding group composed of Ontario Teachers' Pension Plan Board, Madison Dearborn Partners, LLC and Providence Equity Partners Inc.

What I find interesting about this is the same type of thing I find 'interesting' about the investment arm of the Gates Foundation which has been criticized for its lack of ethical investment criteria. (See: LA Times: Dark cloud over good works of Gates Foundation. Something not noted in this article is that there is evidence that there is direction from the Gates foundation on opposing generic drugs and any other situations where the marginal price of knowledge is allowed to approach the natural marginal cost of zero)

Will the Ontario Teachers' Pension Plan Board be directing BCE in ways that help the teaching profession or education in general, or will there be no policy influence at all. The ideology that investment return is the most lucrative policy has no merit IMHO, given if the activities of BCE end up lowering the work or retirement quality of Ontario teachers the investment can easily be a net negative.



Date: 2007-09-21

Ottawa, September 21, 2007 -- The Competition Bureau announced today that it has informed the parties that it is not challenging the acquisition of Bell Canada Enterprises Inc. (BCE) by the bidding group composed of Ontario Teachers' Pension Plan Board, Madison Dearborn Partners, LLC and Providence Equity Partners Inc.

The Bureau's review focussed particularly on Teachers' shareholding in Manitoba Telecom Services Inc. (MTS), a competitor to BCE. The conclusion that the proposed transaction was unlikely to lead to a substantial lessening or prevention of competition was based, in part, on the fact that Teachers' has no right to appoint directors to the Board of MTS.

As mandated by the Act, the Bureau has the authority to review mergers in Canada to determine whether they are likely to result in a substantial lessening or prevention of competition. In all its work, the Bureau strives to promote and safeguard competition, which drives an efficient and productive economy.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.