Inco bid gets a boost from Ottawa

[CHIMO]

Inco Ltd.'s proposed acquisition of Falconbridge Ltd. got a potentially important boost yesterday, as federal politicians of all stripes backed a motion to delay the foreign investment review of a rival takeover bid for Toronto-based Falconbridge.

By slowing the review of Swiss-based Xstrata PLC's $16.1-billion hostile takeover bid for Falconbridge as long as legally possible, the Conservative government would erect a temporary political fence around the deal.

Members of the House of Commons industry committee voted unanimously to ask Industry Minister Maxime Bernier to delay completion of Investment Canada's review of the Xstrata bid until the European Union has finished its review of the proposed Inco-Falconbridge deal.

Mr. Bernier wouldn't comment on his personal view of the proposals in an interview yesterday, but said he believes there are definite advantages to the presence of corporate headquarters. “Usually when you have headquarters, you have lawyers and accountants,” he said. “It creates economic activity.”

http://www.theglobeandmail.com/servlet/story/RTGAM.20060601.wncomotion0601/BNStory/Business/home

[MrPrax]

1. Good catch...

Pretty funny...good to see the Minister has her priorities...protecting lawyers' and accountants' jobs is a much stronger concern than national autonomy. Yes, Toronto-based

Why there is any concern, since this country has been characterized as a branch-plant economy and that battle has been long lost. If the EU is unacceptable as an owner, then who? Maybe China Minmetals Corp can make a bid to takeover the industry again. Doubleplusgood.