Bell Canada Enterprises Inc. announced on Wednesday that it will scrap its holding company structure, and convert its entire core business into Canada`s largest income trust.

As a tax-advantaged trust, the Bell Canada Income Fund will start with an annual cash distribution of C$2.55 per share, compared to BCE`s current dividend of C$1.32. This announcement sent the company`s shares to a one-year high of $34.25, before dropping back to C$32.44, still an increase of $0.89, or 2.82%.

Bell Canada`s move comes just one month after Canada`s #2 telecom provider, Telus Corp., made its own strikingly similar income trust announcement.

CEO, Michael Sabia, admitted that new of Telus` plans was an important factor in his company`s decision. We`re acting now to restore greater parity in the capital markets and greater parity with respect to cost of capital, he explained.