MONTREAL – The proposed acquisition of Canada’s largest telephone company, BCE Inc., by an investor group led by the Ontario Teachers’ Pension Plan and Providence Equity Partners has gained conditional approval from Canadian Industry Minister Jim Prentice, BCE said today.

Once Prentice’s approval is gained, the deal will have cleared its final regulatory hurdle, the company said.

On March 7, “the Quebec Superior Court approved BCE’s plan of arrangement for the transaction and dismissed all claims asserted by or on behalf of certain holders of Bell Canada debentures,” the utility said. “As a result of an appeal of that decision by the debenture holders, BCE now expects the transaction to close before the end of the second quarter of 2008.”

The consortium’s $48.9 billion offer has been characterized as the largest leveraged-buyout bid ever.

Ontario Teachers’, which already owns a 6.3-percent stake, will end up with 52 percent of equity in BCE if the deal goes through. Providence Equity would end up with 32 percent; Madison Dearborn Partners LLC of Chicago, 9 percent; and unidentified Canadian investors the remaining 7 percent, the companies previously have said. (READ MORE)

Providence Equity Partners Inc. is a global private investment firm based in Providence, with offices in New York City, London, Hong Kong and New Delhi, that specializes in media, entertainment, communications and information companies. It has raised $21 billion through seven funds since its founding in 1989. Additional information is available at www.provequity.com.