BCE hires auditor to review KPMG solvency opinion

NEW YORK — BCE Inc. said it hired PricewaterhouseCoopers LLP in an effort to help the Canadian telecom giant complete a $35 billion deal to go private later this week.

PricewaterhouseCoopers was hired to help convince auditor KPMG LLC that BCE, the parent of Bell Canada, will remain solvent after the deal is completed. To close the deal on Thursday as scheduled, KPMG must sign off on the solvency opinion.

Late last month, KPMG said it did not believe BCE could remain solvent if the deal is completed because of the amount of debt needed to finance the deal and current market conditions. BCE was set to sell itself to a consortium of private groups, led by the Ontario Teachers Pension Plan Board and several U.S. partners.

The deal is likely to collapse without the solvency approval from KPMG, BCE said in a statement.

BCE agreed to the deal in June 2007 and shareholders overwhelmingly approved the transaction in September 2007.

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