Other proposals to acquire BCE Inc. "are fraught with considerable political risk," according to Brent Fullard, who is spearheading an alternative financial structure for the telecom operations firm. In a conference call this afternoon, the managing director of Catalyst Asset Management Inc. in Toronto said one competing proposal - merging BCE with rival Telus Corp. - would irk consumers worried about decreased competition for their communication-technology spending. Other proposals, those led by pension funds working alongside US private equity firms, could upset "nationalists" worried about foreign investment, he said. The pension-fund proposals might also impact the federal government, which would see taxable income flowing to investors outside of Canada and beyond the revenue department's reach.

"I would argue this one is the most favourable for Ottawa," Fullard said of Catalyst's approach. His organization's plan would create a special company for exchanging outstanding BCE common shares for a stapled security composed of a common share and a subordinated debt security. Shareholders would see dividends increase from the current annual rate of $1.46 to $2.55 per share, he said. The plan would keep BCE a Canadian company, maximize Ottawa's tax collection, and gives retail investors more of a say in the firm's operations than they'd have if pension funds and private equity investors took over. "All stakeholders...under our proposal are well served," Fullard said.