Thanks to their role in the likely buyout of telecom giant BCE Inc., Canadian pension funds can join hedge funds, private equity players and foreign companies in the pantheon of supposed predators stalking corporate Canada’s defenceless lambs. But rather than fearing these sorts of buyouts, investors should be welcoming them.

Big pension funds such as the Ontario Teachers’ Pension Plan and the Canada Pension Plan Investment Board are said to be leading the charge to take over BCE. The news comes fast on the heels of a number of income trust buyouts, which have the trust industry wagging its fingers at federal Finance Minister Jim Flaherty. And this follows a series of deals for other venerable Canadian names, including Inco Ltd., Falconbridge Ltd., Fairmont Hotels & Resorts Inc., Four Seasons Hotels Inc., Dofasco Inc., Algoma Steel Inc. and Hudson’s Bay Co.

This skimming of the cream of corporate Canada is supposedly something to worry about. It’s a blow to the ever-fragile national pride to see Canadian firms taken out by foreign rivals or voracious private equity firms.

But this is really a phantom fear. First, pride in corporate nationality is sadly misplaced, and hollowing out seems to be largely a myth. Second, shareholders are being handsomely rewarded in these deals.

A more legitimate concern is that such selloffs are starting to make the already-thin domestic equity market look increasingly threadbare. Where are investors supposed to put their money if all of the big, liquid names are being taken out?

This might present a challenge to those determined to invest solely in Canada, but — as should have become clear after the repeal of the foreign property rule — most investors are already far too focused on the domestic market.

These deals expose the Canadian market for what it is — a relatively concentrated play on resources and financials. As investors come to understand this, we hope, they will broaden their investment horizons too, diversifying into a broader selection of assets.

Moreover, the cashing of the blue chips should focus more investor attention on the real action in Canadian stocks — small and mid-sized, growing companies. Although there is more risk associated with this type of firm, the takeout of a really big name such as BCE should wake investors up to the fact that no company is immune to these kinds of events. Suddenly, the risks and rewards of the venture market may not seem so daunting.