Bell Canada in one of biggest buyouts ever

NEW YORK (CNNMoney.com) -- The parent of Bell Canada said Saturday it agreed to be bought by a group led by two private equity firms and the Ontario Teachers Pension Plan for about $33 billion (U.S.) in cash in one of the biggest leveraged buyout deals in history.

Including the purchasers' assumption of $16 billion in debt, the value of the deal to buy BCE Inc. is worth about $48.6 billion.

The pension plan along with U.S.-based Providence Equity Partners and Madison Dearborn Partners won out over several other bidders, BCE said in a statement.

BCE has about 54,000 employees and serves millions of wireless, landline and Internet customers across Canada in addition to about 1.8 million satellite television subscribers.

Under the deal, Providence Equity, Madison Dearborn and the teachers' pension plan will acquire all BCE (Charts) common stock not already owned by the pension plan for C$42.75 a share, the company said in a statement. Financing for the transaction will be provided by banks.

The price is a 40 percent premium over the average trading price for BCE in the first quarter before news of a possible buyout surfaced, the company said.

Once the deal is closed, the investment arm of the teachers' pension would own 52 percent of BCE, Providence would own 32 percent, Madison Dearborn 9 percent and other Canadian investors 7 percent, BCE said.

-- Dollars U.S. unless noted