BCE Inc. (BCE) investors should expect to see at least an 8% reduction in its takeover price after Clear Channel Communications Inc. (CCU) agreed to lower its buyout price by roughly that amount last week with some of the same financers backing the BCE deal, an analyst said.

Joseph MacKay at Desjardins Securities expects the banking syndicate financing the BCE/Ontario Teachers’ Pension Plan deal are using the Clear Channel settlement as a precedent to lower their offer.

A New York Times story on Monday suggested that the banks sent the buyers a set of revised terms, including higher interest rates, tighter loan restrictions and stronger protection that far exceeded original terms.

“Clearly the banks want private equity to share some of the pain in the credit market...” Mr. MacKay told clients, cutting his price target on BCE shares to C$39.25 from C$42.75.

The analyst believes BCE could trade down to the C$36 range and noted that a revised takeover price could lead to a new shareholder vote, which could delay closing until September 2008. He also said an additional dividend is unlikely.

Shares of BCE fell more than 5%, or $2.19, to $36.62 in New York on Monday. The stock did not trade in Toronto as it was a holiday.