Ottawa Business Journal

Bell Canada Eneterprises is negotiating with a private equity group for the outright sale of its wholly-owned subsidiary Telesat Canada, according to a published report.

The Globe and Mail says the group includes the Ontario Teachers Pension Plan, and the deal could value Telesat at $3 billion, including debt. The OTPP is one of BCE's largest shareholders.

In February, BCE announced plans to spin off Ottawa-based Telesat in an initial public offering. At the time, BCE CEO Michael Sabia suggested he might sell as much as 49 per cent of Telesat, but he seems to have had a change of heart.

The paper quotes one source as saying there is now less than a 25 per cent change of an IPO for Telesat.

Telesat is the world's fifth-largest satellite operator, and had revenues of $478 million last year.

For the record, a spokesperson for Teachers declined to comment, and a BCE spokesperson said the company intends to proceed with the IPO.