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22/05/08

BCE shares plunge as court sides with bondholders

TORONTO (Reuters) - Shares of BCE Inc fell 13 percent on Thursday on fears that a Quebec court ruling could kill its C$34.8 billion ($35.2 billion) buyout by a group of investors led by the Ontario Teachers' Pension Plan. In a ruling released late on Wednesday, the Quebec Court of Appeal backed debtholders who had complained that the transaction, the world's largest leveraged buyout, was unfair.

Long winter chills March retail sales

OTTAWA (Reuters) - Heavy snowfall in the late winter chilled retail sales growth in March but analysts still expect consumer spending to help keep the economy afloat in the first quarter. Statistics Canada said on Thursday March retail sales grew by a meeker-than-expected 0.1 percent as gains in the heavyweight auto sector were partially offset by harsh winter conditions that kept shoppers away from clothing and general merchandise stores.

Oil pulls back after topping record $135

NEW YORK (Reuters) - Oil prices pulled back from a record $135 a barrel on Thursday as dealers took profits from a dazzling rally and a recovering U.S. dollar dampened all commodities markets. U.S. crude dipped $1.20 to $131.97 a barrel by 1:23 p.m. EDT after jumping earlier in the session to a record $135.09. London Brent crude fell 91 cents to $131.79 after touching a peak of $135.14.

CAW foresees 300 job cuts at Ford Windsor plant

TORONTO (Reuters) - Buzz Hargrove, president of the Canadian Auto Workers union said on Thursday he expects 300 job cuts at Ford Motor Co's Windsor, Ontario, engine plant due to the company's just-announced production cutbacks. "We'll lose a shift in our V8 engine plant in Windsor and, other than that, I don't see it having an impact anywhere else," Hargrove told Reuters.

MTS mum on wireless plans as bid group dissolved

OTTAWA (Reuters) - Manitoba Telecom Services has dissolved a consortium formed to bid on airwaves in an upcoming auction of Canadian wireless spectrum, and analysts say that raises questions about its wireless expansion plans. "Intense and complex negotiations" among the consortium members -- Manitoba Telecom (MTS), the Canada Pension Plan Investment Board and Blackstone Capital Partners -- became stalled over a handful of key issues, MTS Chief Executive Pierre Blouin said on Thursday.

Bank of Canada urges new ways to avoid credit woes

OTTAWA (Reuters) - The recent turmoil in global credit markets had eased in recent weeks but policy-makers must not to be complacent and should develop new ways of averting future market meltdowns, Bank of Canada Governor Mark Carney said on Thursday. In a speech to the New York Association of Business Economics, Carney said central banks should consider a new set of tools for intervening in markets at times of rapid credit growth and overly easy financing, thus helping to avert crises like the credit crunch.

McDonald's absorbs some costs to keep customers

OAK BROOK, Illinois (Reuters) - McDonald's Corp is willing to absorb some of the higher costs for ingredients such as oil, meat and dairy to promote customer loyalty, Chief Executive Jim Skinner said on Thursday. "This is not the time to be passing that on to consumers. They have long memories," Skinner said.

Sherritt says worried about rising Ambatovy costs

TORONTO (Reuters) - Sherritt International Executive Chairman Ian Delaney said on Thursday he is concerned about a cost "blow-out" at the $3.3 billion Ambatovy nickel project in Madagascar. "The only thing I lose sleep over these days is staying on track, on budget, and on schedule in Madagascar," he told reporters after the company's annual shareholder meeting in Toronto. Asked if he was worried about a cost blow-out, he replied, "Yup."

Canadian dollar turns lower after weak retail data

TORONTO (Reuters) - The Canadian dollar gave back a slice of its recent gains versus the U.S. dollar on Thursday as domestic retail sales data were lower than expected, but the currency's fall was cushioned by record high oil prices. Domestic bond prices were pinned lower across the curve due in large part to influence from overseas markets and data that showed jobless claims in the United States unexpectedly fell.

Toronto stocks up, but bruised by BCE and oil

TORONTO (Reuters) - The Toronto Stock Exchange's main index clung to some of its early gains on Thursday morning but activity was volatile as the buyout of BCE seemed in jeopardy and oil prices dropped sharply, while financial shares bounced back from a three-session decline. The heavyweight shares of BCE Inc, Canada's biggest telecoms company, were down more than 13 percent -- the TSX's worst performer by far -- after a court ruling cast doubt on its proposed sale to a buyout group led by Ontario Teachers' Pension Plan.

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