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Reuters Canada Business Summary

16/07/08

Court ruling lets Melnyk renew Biovail battle

TORONTO (Reuters) - A fight for control of Canadian drugmaker Biovail Corp between founder Eugene Melnyk and the company's board and management went into a second round on Wednesday when a judge ruled that a shareholder vote that went against Melnyk last month was held improperly. The Ontario court judge ordered Biovail to reconvene the shareholder meeting held on June 25 within 90 days. When it is, shareholders will vote on a new slate of directors being proposed by Melnyk to replace the incumbent board.

Sagging auto exports to hit Canadian growth: report

TORONTO (Reuters) - The Conference Board of Canada lowered its forecasts for Canadian economic growth in 2008 and 2009 on Wednesday, citing declining exports to the struggling U.S. market, especially in the auto sector. In its summer outlook, the Conference Board forecast gross domestic product would advance 1.7 percent this year, down from 2.2 percent in its spring forecast. Canada's GDP growth in 2007 was 2.7 percent.

Oil falls sharply on surprise U.S. stock build

NEW YORK (Reuters) - Crude oil prices dropped sharply for a second day on Wednesday after a U.S. government report showed a surprise increase in inventories and continued weak demand in the world's top consumer nation. The decline in prices, which marked the biggest two-day loss in percentage terms since January 2007, helped stocks on Wall Street regain some of the ground lost in recent days on fears over the health of the U.S. banking sector.

Shoppers Drug profit up on strong sales, cost cuts

TORONTO (Reuters) - Profit at Shoppers Drug Mart rose about 14 percent in the second quarter, Canada's biggest pharmacy chain said on Wednesday, aided by stronger sales, cost reductions and a decrease in its income tax rate. Shoppers, which also operates stores under the Pharmaprix banner, said it earned C$128 million ($128 million), or 59 Canadian cents a share, in the period ended June 14. That compares with a profit of C$112 million, or 52 Canadian cents, in the same period last year.

May factory sales rise sharply in May

OTTAWA (Reuters) - Soaring prices for petroleum and coal products helped drive Canadian manufacturing sales up by a steeper-than-expected 2.7 percent in May, the biggest rise since March 2007, Statistics Canada said on Wednesday. However, on a volume basis, factory sales were up a scant 0.2 percent in the month, Statistics Canada said.

Toronto stocks fall on lower oil, banks bounce

TORONTO (Reuters) - Toronto Stock Exchange's main index was lower at midmorning on Wednesday as resource shares dropped on weaker prices for oil and other commodities. Oil and gas shares dropped more than 3 percent as oil fell to around $133 a barrel after a U.S. government report showed a surprise leap in crude supplies.

TransCanada, Conoco to extend pipeline to U.S. Gulf

CALGARY, Alberta (Reuters) - TransCanada Corp and partner ConocoPhillips said on Wednesday they will spend $7 billion to expand the Keystone pipeline system to take an additional 500,000 barrels of Canadian oil sands crude per day to the refineries on the U.S. Gulf Coast. TransCanada, the country's biggest pipeline firm, said it decided to go ahead with the project after customers committed to ship 300,000 barrels per day (bpd) on the line for an 18 year-term.

Dollar flat as market awaits BoC outlook

TORONTO (Reuters) - The dollar was little changed versus the U.S. dollar on Wednesday as traders took a breather ahead of the Bank of Canada Monetary Policy Report Update, which may expand on the bank's economic outlook. Domestic bond prices were slightly higher across the curve as mounting concerns about the U.S. financial sector's health kept secure assets like government debt in demand.

Ex-Samsung chief given 3-year suspended jail term

SEOUL (Reuters) - Former Samsung Group chief Lee Kun-hee, one of South Korea's most powerful businessmen, was handed a 3-year suspended jail sentence on Wednesday for tax evasion, but was cleared of other charges. The court also fined Lee 110 billion won ($109 million), more than double the amount of taxes he evaded, but cleared him of charges of breach of trust and illegal issuance of bonds aimed at transferring wealth to his children.

AOL talks with Microsoft, Yahoo heat up: source

NEW YORK (Reuters) - Time Warner Inc's discussions to merge or sell its AOL Internet division with Microsoft Corp or Yahoo Inc have taken on new urgency ahead of Yahoo's Aug 1 shareholders meeting, a source familiar with the discussions told Reuters on Tuesday. The structure of any deal is not immediately clear, though a combination of any of the parties is expected to redraw the landscape for advertising on the Internet.

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