BCE (BCE) NewsBite - BCE Surges on Takeover News

Posted on Monday, July 07, 2008 10:41 AM

BCE Inc. (BCE) opened at 38.71. So far today, the stock has hit a low of 38.42 and a high of 38.98. BCE is now trading at 38.34, up 3.59 (9.27%). The stock hit its 52 week high of 44.59 in November and set its 52 week low of 32.20 in June. BCE dropped at the end of 2007, but has been moving sideways for the past few months. Shares of BCE have been surging today following Friday morning's announcement that a group of investors, led by Teachers' Private Capital, will buy the company for 51.7 billion Canadian dollars ($50.9 billion). Under the agreement, the investment group will buy all common shares of BCE not already owned by Teachers' for 42.75 Canadian dollars ($42.12) cash. Technical indicators for the stock are bullish but slightly deteriorating while S&P gives BCE a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a December bull-put credit spread below the $30 range. BCE stock could fall up to 21.8% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]