TORONTO—BCE is propping up its mobile-phone subsidiary Bell Canada International by putting in up to C$500 million (US$317 million) to meet financial obligations of C$1.3 billion (US$824 million) due in April. BCE, Canada’s largest communications company, owns about 74 percent of Bell Canada International’s shares.
BCE has agreed to buy a proportional amount of the recapitalization. Its investment allows Bell Canada International about six to nine months of breathing space and gives the subsidiary more time to raise its own capital through the debt or equity markets. In the past year, the mobile unit has been adversely affected by the economic downturn in the global telecom sector and has been especially susceptible to the poor business conditions in South America.
