Canadian-led consortium in discussions with BCE Inc.



    TORONTO and MONTREAL, April 17 /CNW Telbec/ - A consortium led by three
Canadian institutional fund managers and one of the world's largest private
equity firms confirmed today that it is working with BCE Inc. with regard to a
potential transaction to take the publicly-traded company private. The Canada
Pension Plan Investment Board, Caisse de dépôt et placement du Québec and the
Public Sector Pension Investment Board, who together would be majority
shareholders, and Kohlberg Kravis Roberts & Co. are the four partners forming
the consortium.
    David Denison, President and CEO, CPP Investment Board, said: "We are
pleased to be working with BCE and its Board towards a potential transaction
that would enable long-term value creation for the company. We look forward to
working with BCE and our consortium partners as we proceed with the due
diligence process."
    Henri-Paul Rousseau, President and CEO of the Caisse, said: "The Caisse
is joining the consortium with the objective of submitting a proposal that
will be acceptable to all stakeholders, including shareholders and regulatory
authorities. Obviously, the size of the Caisse's investment in a potential
transaction involving BCE will take into account its investment in Quebecor
Media."
    Gordon Fyfe, President and CEO, PSP Investments, said: "Each of the
partners will actively bring in-depth knowledge and expertise to the
consortium."
    Henry Kravis, co-founding member of KKR, said: "We are pleased to be a
partner with this consortium of leading Canadian institutional fund managers
and look forward to working closely together in this transaction. Our
experience in large, complex transactions of comparable size will be of
significant value to this process."
    The consortium noted that discussions are at an early stage and there can
be no assurance that a transaction of any kind will result.

    About the CPP Investment Board

    Canada Pension Plan Investment Board invests the funds not needed by the
Canada Pension Plan to pay current benefits. In order to build a diversified
portfolio of CPP assets, the CPP Investment Board is currently investing cash
flows in publicly traded stocks, private equities, real estate,
inflation-linked bonds and infrastructure to balance the legacy government
bond portfolio. Based in Toronto, the CPP Investment Board is governed and
managed independently of the Canada Pension Plan and at arm's length from
governments. At December 31, 2006, the CPP fund totaled C$110.8 billion,
including approximately C$9 billion invested in private equity and
infrastructure investments. For more information, please visit www.cppib.ca.

    About the Caisse de dépôt et placement du Québec

    The Caisse de dépôt et placement du Québec is a financial institution
that manages funds primarily for public and private pension and insurance
plans. As at December 31, 2006, it held CA$143.5 billion of net assets. As one
of the leading institutional fund managers in Canada, the Caisse invests in
the main financial markets as well as in private equity and real estate.

    About PSP Investments

    The Public Sector Pension Investment Board (PSP Investments) is a
Canadian crown corporation established in September 1999 by Parliament by the
Public Sector Pension Investment Board Act. The mandate of PSPIB is to manage
employer and employee contributions made after April 1, 2000 to the Federal
Public Service, the Canadian Forces and the Royal Canadian Mounted Police
pension funds. It has also recently been given the mandate to manage the
employer and employee contributions made after March 1, 2007 to the Reserve
Force Pension Fund. PSPIB has approximately a total of CAD $35 billion under
management. The Head office of PSPIB is located in Ottawa. Its principal
business office is in Montreal.

    About KKR

    Kohlberg Kravis Roberts & Co. (KKR) is one of the world's oldest and most
experienced private equity firms specializing in management buyouts. Founded
in 1976, it has offices in New York, Menlo Park, London, Paris, Hong Kong and
Tokyo. Throughout its history, KKR has brought a long-term investment approach
to its portfolio companies, focusing on working in partnership with management
teams and investing for future competitiveness and growth. Over the past 30
years, KKR has completed over 150 transactions with an aggregate value of over
US$279 billion. (www.kkr.com)




For further information:

For further information: For CPP Investment Board: May Chong, Director,
Communications, (416) 868-8657, mchong@cppib.ca; For the Caisse: Lucie
Frenière, Senior Director, Media Relations and Business Development Support,
Caisse de dépôt et placement du Québec, (514) 847-5949,
lfreniere@lacaisse.com; For PSP: Anne-Marie Laurendeau, Director,
Communications & Government Relations, (514) 937-2772,
amlaurendeau@investpsp.ca; For KKR: Ruth Pachman or Lin Wu, Kekst and Company,
(212) 521-4800, ruth-pachman@kekst.com


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