The proposed C$34.8bn ($27.3bn) buy-out of BCE, the Canadian telecommunications giant, appeared less likely on Thursday as the private equity firms that agreed to the takeover debated instead whether to buy a minority stake in the company.

Providence Equity Partners and the Ontario Teachers Pension Plan, which had originally agreed to purchase a combined 84 per cent equity stake in BCE, are proposing to buy a fraction of the company as an alternative to having the deal completely fall apart, according to people close to the matter.