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Reuters Canada Business Summary

04/07/07

Canadian IPOs fall 79 pct in first half : survey

TORONTO (Reuters) - The value of new public offerings on Canada's equity markets in the first half of 2007 was down 79 percent from the same 2006 period, a survey released on Wednesday showed, as the market for income trusts dried up. Initial public offerings equity worth C$855 million ($807 million) were sold in the first half, down from C$4 billion in the same period a year earlier, when high-yielding income trusts represented more than half of the market for IPOs, the survey, done by consultants PricewaterhouseCoopers (PwC), found.

Yamana may have to fight for Meridian: analysts

TORONTO (Reuters) - Yamana Gold Inc. may have to raise its bid for Meridian Gold if it wants to complete a three-way merger with the gold producer, analysts said on Wednesday. Speaking a day after Meridian said Yamana's unsolicited proposal "does not reflect the value" of the company, analysts also said rival bids could be a possibility, as gold companies rush to add reserves and production.

RIM wins permission to sell in China: paper

OTTAWA (Reuters) - Research In Motion Ltd. has won permission to sell its BlackBerry device in China after eight years of effort, the Globe and Mail newspaper said on Wednesday. After several delays, the Canadian technology company won approval last month from the Chinese Ministry of Information Industry to sell its handsets, the newspaper said.

Stocks flat in quiet session

TORONTO (Reuters) - Stocks were flat at midmorning on Wednesday, after opening in negative territory, as investors paused after Tuesday's strong gains, while volume was hampered by a U.S. national holiday. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 5.67 points at 14,070.41 after dropping as low as 14,039.80 near the start.

Blackstone to buy Hilton for $20 billion

LOS ANGELES (Reuters) - U.S. private equity firm Blackstone Group agreed on Tuesday to buy Hilton Hotels Corp. for about $20 billion plus debt, the richest in a series of recent private equity offers for hotel companies. Under terms of deal, Blackstone will pay $47.50 per share in cash, a 32 percent premium to Tuesday's closing price, for one of the most prominent global hotel brand names.

BCE rating could fall over 6 notches: S&P

LONDON (Reuters) - The rating on Canadian telecoms company BCE Inc. could fall by over six notches if its buyout by an investor consortium is fully debt-financed, ratings agency Standard & Poor's said on Wednesday. BCE, currently rated A-, could have its rating cut to the B category if the deal is fully debt-financed, leading to adjusted debt leverage of more than 8.5 times, S&P said.

Strike notice filed for Canada coastal loggers

VANCOUVER, British Columbia (Reuters) - About 4,500 lumber workers on Canada's Pacific Coast will strike this weekend unless a contract deal is reached with their employers, the union said on Wednesday. The United Steelworkers filed a 72-hour strike notice with industry bargaining agent Forest Industrial Relations (FIR) late on Tuesday after talks stalled over a variety of issues, including shift scheduling for loggers and sawmill workers.

Canada dollar firm on commodities, bonds dip

TORONTO (Reuters) - The Canadian dollar was higher versus the greenback on Wednesday, supported by strong commodity prices in a quiet session marked by a lack of domestic data and with U.S. markets closed for the Independence Day holiday. Bond prices were lower as investors looked ahead to Friday's Canadian jobs figures.

Oil sets 10-month high above $73

LONDON (Reuters) - Oil set a 10-month high above $73 a barrel on Wednesday, supported by low U.S. fuel inventories and expectations of strong gasoline demand in the world's top consumer. U.S. gasoline inventories, which remain below those of a year earlier, probably rose by just 300,000 barrels last week, according to a Reuters poll of analysts. Demand is as strong as ever.

Fiat wants Cinquecento to be the iPod of cars

TURIN, Italy (Reuters) - It was the small car that could park in the tightest of spots on the piazza, as Italian as prosciutto and espresso. On its 50th birthday, the Cinquecento is back, and Fiat wants it to become the iPod of cars. Fiat is launching a new version of the three-door Cinquecento -- meaning "500" in Italian -- at a huge, televised ceremony in its hometown of Turin on Wednesday, with the car making its comeback after being out of production for 32 years.

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