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Reuters Canada Business Summary

13/05/08

HP seals EDS deal for $12.6 billion

NEW YORK (Reuters) - Hewlett-Packard Co plans to buy technology outsourcing company Electronic Data Systems Corp to better compete against IBM , but Wall Street questioned whether the $12.6 billion deal for a slow-growing company was overpriced. HP shares fell nearly 7 percent after the deal was announced on Tuesday, on top of a 5 percent drop on Monday in anticipation of the news. The declines have wiped about $13 billion off HP's market value, taking it to $108 billion.

TD Bank reaffirms U.S. banking profit forecast

TORONTO (Reuters) - Toronto-Dominion Bank reiterated its full-year U.S. earnings forecast on Tuesday despite economic uncertainty, as the Canadian bank pushes south of the border with its recent purchase of Commerce Bancorp. Speaking at a financial services conference in New York, Chief Executive Ed Clark reaffirmed the bank's target net income from its U.S. personal and commercial banking segment of $750 million in 2008. TD had lifted this estimate from $700 million in April.

Rona squeezed by economic slowdown, winter weather

TORONTO (Reuters) - Rona Inc reported an almost 90 percent drop in first-quarter profit on Tuesday, as a softer economy and lingering winter weather in Eastern Canada hammered the home renovation retailer's results. The company, which counts on Quebec and Ontario for almost 70 percent of sales, also warned it would have a hard time meeting its goal of low single-digit growth in earnings per share over the next few years, given the weak first-quarter and "the greater than anticipated slowdown in the Canadian economy."

Oil hits record near $127

NEW YORK (Reuters) - Oil surged to a record peak near $127 on Tuesday after OPEC producer Iran said it was studying a plan to cut output despite signs record-high prices are hurting consumer nations. U.S. crude jumped $2.00 to $126.23 a barrel by 1:45 p.m. EDT, after striking a record $126.98 earlier. London Brent crude rose $1.61 to $124.52 a barrel.

ABCP plan opponents assail lack of authority

TORONTO (Reuters) - The judge overseeing a massive restructuring plan for Canada's nonbank asset-backed commercial paper market doesn't have the jurisdiction to give banks immunity from lawsuits, a lawyer told a court hearing on Tuesday. A sticking point in the $32 billion court-approved restructuring plan is that it prevents corporate noteholders from suing the banks and brokerages that sold them the stricken asset-backed commercial paper, which has been frozen since last August.

Cameco profit more than doubles

TORONTO (Reuters) - Cameco Corp said on Tuesday its first-quarter profit more than doubled, helped by higher uranium deliveries. The world's top uranium producer earned $133 million or 37 Canadian cents a share, in the quarter ended March 31. That was up from $59 million, or 16 Canadian cents a share, in the year-before quarter.

Iamgold profit triples as gold prices soar

TORONTO (Reuters) - First-quarter profit at Iamgold tripled, the company said on Tuesday, as soaring gold prices more than made up for higher-than-expected costs and the impact of a robust Canadian dollar. The mid-tier Canadian gold producer earned $34.4 million, or 12 cents a share, in the three months ended March 31. This was up from $11.3 million, or 4 cents a share, in the same period a year earlier.

Doubt slows barley sales: CWB chief

OTTAWA (Reuters) - Barley sales by Western Canadian farmers are a little slower than normal due to uncertainty over government legislation to end the Canadian Wheat Board's monopoly, the chief executive of the CWB said on Tuesday. "With the issues in the market place, we're not seeing quite the level of take up on the sales side as we would normally see," Ian White, chief executive of the CWB, told Reuters after appearing before a parliamentary committee.

CI Financial profit dips with markets

TORONTO (Reuters) - CI Financial Income Fund reported a 2 percent drop in first-quarter profit on Tuesday as a result of declines in equity markets. Canada's third-largest mutual fund company posted earnings of C$139.4 million ($139.4 million), or 50 Canadian cents a unit, for the three months ended March 31. That compares with a profit of C$142.1 million, or 51 Canadian cents a unit, a year earlier.

TSX drops on profit-taking, resources

TORONTO (Reuters) - Toronto's main stock market index retreated on Tuesday as weak commodity prices and profit-taking knocked it off the record high it hit on Monday. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was down 79.17 points, or 0.5 percent, at 14,586.90 at midmorning. Earlier in the session it fell as low as 14,553.06.

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