Calling All Investors…
Some key names in the news to highlight over the past month would be RIM, Apple and BCE.
June 28th, RIM announced better than expected quarterly earning which sent the stock up more than 35$ on the day. Earnings surged 73% for its fiscal quarter, easily beating the expectations on the street. Further to their earnings announcement, RIM also announced that the stock will trisplit, which means if you are an owner of RIM the company will give you 3 new shares for your one old share (1/3 the value of the old share). Look for the new share price to take effect some time in August.
Having its thunder stolen right from under its nose, Apple launched its much-anticipated iPhone on June 29th. The iPhone will be solely distributed through AT&T and will initially only launch in the US market. This camera, music playing touch screen phone carries a price tag of $499 US.
So when can you get your hands on your very own iPhone here in Canada? Who knows says Rogers? “The truth is we aren’t very far with Apple,” Bill Linton, Rogers’ chief financial officer, told a conference last month. “They’re concentrating on this launch and the U.S., and when they decide to turn their mind to other markets, we’ll be in line.”
So what’s the latest in the BCE, Bell Telephone saga? BCE announced that the company has entered into a definitive agreement to be acquired by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers Pension Plan, Providence Equity Partners Inc., and Madison Dearborn Partners, LLC. Transaction details are as follows:
The investor group will acquire all of the common shares of BCE for $42.75 per share in cash. The transaction is subject to customary approvals, CRTC approvals, and the approval of 66 2/3% of outstanding common and preferred shareholders. Our analyst here at Scotia Capital feels a price of $42.75 is too low and it is possible that we may see other offers hit the table. Our analyst still believes that a Telus/BCE merger would offer the most value to shareholders because of the significant synergies that exist between the two companies.
Once again I remind you that if you are holding BCE shares in your safety deposit box or in a drawer a home, it is important to deposit them into your investment account. ScotiaMcLeod offers a free service where we can electronically register these share certificates in your name and deposit them into your trading account. If you have any questions, do not hesitate to call me.