BCE: Full Fledged Bidding War May Break Out

The question for us BCE (NYSE: BCE) shareholders is: will a full-fledged bidding war for the company break out?

If, say, three entities want BCE that certainly increases our (shareholders) chances of getting a higher price. Sure, we could see that with two contenders. But if we're hoping, let's hope for more than two, right? ;-)

This Bloomberg story about Cerberus recruiting the Hospitals of Ontario Pension Plan suggests events are going in that direction:

The Toronto-based pension-fund manager signed a non- disclosure agreement with Cerberus and committed equity, according to Andy Moysiuk, managing partner of the firm's buyout unit. He declined to disclose how much equity was pledged.

The Cerberus group is at least the third examining an offer, which would put Canada's most widely traded stock into private hands for the first time in more than a century. Other potential buyers are a group led by Canada Pension Plan Investment Board, which includes Kohlberg Kravis Roberts & Co., and the Ontario Teachers' Pension Plan, BCE's largest shareholder.

The hospital fund's investment is "significant to HOOPP and significant to the consortium,'' Moysiuk said in a telephone interview. The fund manager oversees C$28 billion ($25.9 billion), he said.

That said, we've seen a nice run up in BCE shares since recommending them at $23.01 last August. I'm tempted to take some chips off the table. And will report here if I do.