News from Reuters

Reuters Canada Business Summary

24/06/08

Weak resources help pummel TSX

TORONTO (Reuters) - The Toronto Stock Exchange's main index shed nearly 2 percent on Tuesday, dragged down by skidding resource issues amid investor concerns over the long-term prospects for oil demand. A see-saw session for crude prices provided scant support for the benchmark, as oil finally settled up 26 cents at $137.00 a barrel amid worries over supply disruptions in Nigeria and increasing tensions between Israel and Iran.

Melnyk loses bid to replace Biovail board: report

TORONTO (Reuters) - Biovail Corp founder Eugene Melnyk has lost his bid to install a hand-picked slate of directors at the struggling drug company, the Globe and Mail newspaper reported on its website on Tuesday. Citing unnamed sources, the Globe reported Melnyk was not able to get enough votes to replace the company's directors with his own nominees. The results of the proxy fight between Melnyk and Biovail's current management were not expected to be released until the company's annual meeting on Wednesday.

Yahoo shares yo-yo with reports on Microsoft talks

NEW YORK/SAN FRANCISCO (Reuters) - Shares of Yahoo Inc rose as much as 11 percent on Tuesday, reversing earlier declines, after contradictory reports on whether buyout talks with Microsoft Corp were heating up again. "People are attributing huge outcomes to very small pieces of information," said Sanford C. Bernstein analyst Jeffrey Lindsay, referring to a flurry of thinly detailed stories citing unnamed sources that caused Yahoo's stock to spike.

Banks funding BCE takeover want concessions: sources

PHILADELPHIA (Reuters) - Banks funding the planned $34.1 billion takeover of Canadian telecommunications company BCE Inc have asked for more significant economic concessions and have weighed altering or scuttling the deal, sources familiar with the situation said on Monday. BCE won a legal victory on Friday after the Supreme Court of Canada backed the company in a battle against a group of bondholders, but negotiations continue between the banks, the buyers and BCE on the terms of the funding, the sources said.

Loonie ends higher as data hits greenback

TORONTO (Reuters) - The Canadian dollar closed higher on Tuesday as weak U.S. data weighed on the greenback, but its move was limited ahead of the rate decision from the Federal Reserve due on Wednesday. Domestic bond prices, with no Canadian data to consider, followed the bigger U.S. Treasury market to a higher close after weak data from south of the border provided more evidence for the view that the Fed would hold off on any increase in interest rates for some time.

Canadian refinery backer wins creditor protection

CALGARY, Alberta (Reuters) - A company proposing a $4.6 billion refinery on Canada's East Coast has won protection from creditors, allowing it to devise a restructuring plan that may include selling assets or bringing in new partners, one of its owners said on Tuesday. Newfoundland's Supreme Court granted a request by Newfoundland and Labrador Refining Corp to block a bid by a unit of engineering firm SNC-Lavalin Group Inc to have the firm declared bankrupt, said Altius Minerals Ltd , which owns 39.6 percent of the refinery developer.

Canada's housing market still strong: central bank

TORONTO (Reuters) - Conditions in the Canadian housing market remain "favorable," with overall prices rising and few signs of excess supply, Sheryl Kennedy, deputy governor of the Bank of Canada, said in a speech on Monday. "The moderation in activity and price increases that we have seen in recent months is both expected and welcome," Kennedy told an investment industry conference in Banff, Alberta.

Kodak sets $1 billion stock buyback, stock jumps

NEW YORK (Reuters) - Eastman Kodak Co said on Tuesday it would buy back up to $1 billion of its stock, driving the photography company's share price up nearly 17 percent from historical lows. Kodak said it would fund part of the stock repurchase program, which is authorized through the end of 2009, from a $581 million tax refund also announced on Tuesday. The remainder is expected to come from available cash on hand.

TD Bank to buy Canada loan unit from ABN AMRO

TORONTO (Reuters) - Toronto-Dominion Bank said on Tuesday that it will acquire the Canadian asset-based lending business of ABN AMRO Bank NV this summer for an undisclosed amount. The business is to operate as TD Asset Finance once the deal closes, and will complement TD's commercial banking business as well as its U.S. asset-based lending business, TD Bank said in a statement.

Crystallex stock jumps on Las Cristinas optimism

TORONTO (Reuters) - Shares of Crystallex International shot up by two-thirds on Tuesday after the company said the Venezuelan government was reconsidering the denial of the mining permit for its massive Las Cristinas gold deposit. The Canadian company said it had met with the country's environment ministry and been told the government had instructed the ministry to discuss modifications that would allow the permit to be issued.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.