Prime Minister Stephen Harper speaks during Question Period in the House of Commons on Oct. 20, 2010.CHRIS WATTIE/Reuters
Ottawa to approve Potash bid, CTV says
The federal Conservatives will approve the hostile bid by BHP Billion Plc for Potash Corp. of Saskatchewan Inc. but only with conditions to address the province of Saskatchewan's concerns, CTV is reporting.
The report comes after Prime Minister Stephen Harper signalled in Parliament that he didn't believe that Potash Corp. is a Canadian champion in need of protection, saying that it's "American controlled," which isn't quite true. About half of Potash Corp.'s shareholders are in Canada, with another half abroad. Most of the shares outside of Canada are held by U.S. investors, but not enough for control. Still, the comment was viewed as a sign that the Harper government is likely to give approval.
MDA won't sell space division
MacDonald Dettwiler and Associates Ltd. says it won't sell its space division amid speculation the company is getting interest from buyers for all or part of its businesses. The timing is interesting, coming amid the Potash debate, because MDA is the subject of the only major block on a foreign takeover by the Canadian government. In 2008, the federal government vetoed a sale of the space division to a U.S. buyer on security grounds. MDA has a property inforation business that's been struggling that analysts said might make sense to sell.
Private equity sets investing record
Who says private equity isn't back? While the volume of buyouts is way down, the private equity industry is poised to invest a record $40-billion in the third quarter, according to an industry report cited by Bloomberg News. That takes year-to-date equity investments to an all-time high of $94-bllion. So why the disconnect between deal volume and amount invested? Leverage. With less available in loans, firms are putting up more of their own cash in transactions when writing the equity cheques.
Warren, will you take a cheque?
Goldman Sachs Group Inc. is considering paying Warren Buffett back $5-billion he staked the company during the financial crisis, The Wall Street Journal reported. Goldman has more than enough cash, and the 10 per cent coupon on the Buffett investment is much higher than market rates.