BCE & Aliant a bad deal for BCE shareholders Re: what is happening with BCE stock; Aliant


a_plutonium@xxxxxxxxxxx wrote:
I been following this stock somewhat, since I hold a sizeable portion.
Correct me if wrong on some of these details. BCE owns a subunit called
Aliant which is a cell phone carrier. And BCE decided to package
together Aliant and some of BCE into a spin off to its shareholders of
BCE common. They are seeking approval from Canada government to spin
off this Aliant subunit.

What I am confused about is that the price of BCE should now be about
$30 per share instead of today's price of about $23.

What am I not getting about this picture? Is it that the value of the
Aliant spinoff is about $7 in value and so $23 + $7 does equal $30?

If my memory is correct, BCE in the late 1990s doubled in price because
it spun-off Nortel. So why in the case of Aliant, has BCE not moved
upwards aggressively?

Some of the above was wrong as Aliant is a stand alone company.
Apparently BCE wanted the mobile unit of Aliant and in exchange gave
Aliant the wirelines in some provinces.

From what I was able to gather information from the news is that on 10
July, BCE shareholders will get 0.0725 units of Aliant for every 1 of
BCE. And get 0.915 units of BCE for every 1 of BCE.

This is a bad and raw deal to me and other shareholders of BCE, in my
opinion.

I own 14,420 BCE on 10July06 which means I end up with :

(14420 X 0.915) + (14420 X 0.0725) = 13194 + 1045 = 14239 total shares

No wonder the share price of BCE has sunk from $28 to $23 in the past
months. I started with 14420 and now end up with 14239.

I am sure BCE is trying to justify this by saying that the 1045 shares
of Aliant Unit is worth about $32. today whereas the BCE shares are
worth $23. So that the extra value in money is more than the original
14420.

I do not buy that argument for playing the StockMarket VonNeumann
Gametheory, it is the increase in numbers of share units that is the
real measure of an increase in wealth.

So if BCE had made the exchange rate as that of 0.0725 with that of
0.9275 which when added together is 100%. Then I would be happy as a
BCE shareholder. But I lost 0.915 + 0.0725 = 0.9875 subtracted from 1
is 0.0125 which when multiplied by 14420 is my lost 180 shares.

So no wonder BCE fell from its crest of $28 earlier this year to its
present $23. This deal does not benefit shareholders in that they lose
numbers of shares overall. I want more shares of stock, not the paper
dollars.

Why did not anyone stand up and raise a fuss to BCE that they should be
giving a ratio not of 0.915 but rather that of 0.9275.

Is it too late to make such a change??????

I hope some friends in Canada can make this change.

Archimedes Plutonium
www.iw.net/~a_plutonium
whole entire Universe is just one big atom
where dots of the electron-dot-cloud are galaxies



Archimedes Plutonium
www.iw.net/~a_plutonium
whole entire Universe is just one big atom
where dots of the electron-dot-cloud are galaxies

.

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