BCE Will Offer Stock Swap for Remainder of Teleglobe

BCE Inc. said it will offer to buy the remaining 77% of Teleglobe Inc., owner of the world’s third-largest international telecommunications network, in a share-swap deal it valued at $6.65 billion. Montreal-based BCE said its president and chief executive, Jean Monty, would become Teleglobe chairman immediately, replacing Chairman and Chief Executive Charles Sirois, who would remain as an advisor. Paolo Guidi, president and chief executive of Teleglobe Communications Corp., and Christina Gold, president and CEO of Teleglobe’s Excel unit, were named as co-chief executives of Teleglobe in addition to their current responsibilities. BCE, which owns 80% of Bell Canada, the country’s largest telephone company, currently owns about 23% of Teleglobe. Kenny Troutt, who founded Excel and owns 18% of Teleglobe, and Sirois, who holds 8% and spearheaded Teleglobe’s international expansion, have both accepted the BCE offer. The board of Teleglobe, which is also based in Montreal, plans to recommend the offer to all remaining shareholders. Trading in both companies’ shares was halted. BCE fell 0.75 Canadian dollar to 173.25 Canadian dollars before the halt. Teleglobe rose 1.60 Canadian dollars to 47.55 Canadian dollars.