The failure of the largest Leverage buy out deal for BCE or Canada's largest telecom company demonstrated just how greedy investors were.

Essentially the LBO group, led by the Ontario's Teachers Pension Plan, was to buy the company for $42.75 a shares in cash from shareholders.

What was insane was the crazy wild ride the investors were taken. The stock have been trading like a Yo-yo between $33 and $40 (all in CAD) resulting from uncertainty of the deal in midst of the financial crisis.

The shares of BCE have long traded between $25 - $30 for the last 5 years before the LBO deal.

Given the situation of the crisis and uncertainties of the deals, investors were still hanging on and HOPING that the deal will go through at $42.75.

What I am saying, why be so greedy? why not fold the chips away. Now that all is gone, for the greedy few, it's a hard lesson to pay for.

In 2007, BCE was paying $1.45 a year in dividends. The shares went up to $40 and hung around there for almost a year that's when the greed kicked in. Too many investors were just waiting for the deal to close to get the full price of $42.75.

What does this mean?

Scenario 1) If your avg cost is $25/share and you could get out at $40, You'll be making a gain of $15. Look at it this way, BCE is paying you 10 years of dividends upfront ($15/1.45).

Scenario 2) If your avg cost is $30/share and you could get out at $40, You'll be making a gain of $10. BCE is paying you 7 years of dividends upfront ($15/1.45).

Why bother holding on for the next year or so waiting to edge out the extra 4.75 a shares? It just makes no senses and bothers me to see how irrational investors can be. They were hoping to get the extra $2.75 within 6 to 12 months before the deal closes. In the mean time, the biggest financial crisis going on, AIG, Lehman, Merrill, Citigroup, CIBC and many others banks were facing difficulties and investors were standing tight thinking the deal will go through!