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Reuters Canada Business Summary

21/07/08

Roche offers to buy out Genentech for $43.7 billion

BASEL, Switzerland (Reuters) - Swiss drugmaker Roche Holding AG offered to acquire all outstanding shares in its U.S. partner Genentech Inc for $43.7 billion in cash to reinforce its position in cancer medicines. Roche, which already owns 55.9 percent of Genentech, said on Monday it would offer $89 per share to buy up the remaining stake, a 9 percent premium to the biotech company's closing share price on Friday.

Toronto stocks rise 1 percent at open on TransAlta bid

TORONTO (Reuters) - Toronto's main stock market index jumped 1 percent at the open on Monday as a takeover bid for TransAlta Corp and stronger-than-expected results from Bank of America soothed worries over the global credit crunch. Just after the open, the Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 129.75 points, or 1 percent, at 13,645.71.

Cadence accepts Barrick's bid, Daylight pulls out

TORONTO (Reuters) - Barrick Gold Corp said on Monday that Cadence Energy's board had accepted its C$410-million cash offer, scuttling an earlier bid from Daylight Resources Trust . Barrick, the world's biggest gold miner, said the board of directors of Cadence believed Barrick's C$6.75-a-share offer was "in the best interests of Cadence and its shareholders."

Oil up above $130 after inconclusive Iran talks

LONDON (Reuters) - Oil rose back above $130 a barrel on Monday after inconclusive talks at the weekend between Iran and world powers helped the market to recover from its biggest one-week slide on record. Tropical Storm Dolly, which is headed for Mexico's Yucatan Peninsula, also helped to boost the market as the storm was set to pass just north of Mexico's huge Cantarell oilfield.

Banking results boost equities, oil higher

LONDON (Reuters) - Global stocks picked up last week's rally on Monday, sharply boosted by easing concerns about banking earnings, while oil firmed to around $130 a barrel and the dollar weakened. Wall Street looked set for a positive start, particularly after Bank of America reported far higher-than-expected second-quarter earnings.

LS Power, Global Infrastructure to buy TransAlta

TORONTO (Reuters) - LS Power Equity Partners and Global Infrastructure Partners said on Monday they plan to jointly buy all the outstanding TransAlta Corp stock in a C$39-per-share, all-cash deal. The proposal represents a 21 percent premium to the closing price of TransAlta's common stock on Friday, and a premium to the stock's 52-week high, LS Equity Partners said.

Banks could rain on earnings parade

TORONTO (Reuters) - Strong results from some of Canada's key companies could take a back seat to ongoing turmoil in financial markets as the second-quarter reporting season gets under way. Commodity-based companies -- oil and gas, agriculture and mining -- are expected to fare reasonably well this reporting season, but those connected with the Toronto Stock Exchange's heavily weighted financial sector are likely to experience a rougher ride.

Stocks rise at open as BofA lifts financials

NEW YORK (Reuters) - Stocks rose at the open on Monday after Bank of America posted quarterly results that buoyed hopes the worst of the credit crisis may be abating. The Dow Jones industrial average <.DJI> rose 35.82 points, or 0.31 percent, at 11,532.39, and the Standard & Poor's 500 Index <.SPX> was up 3.52 points, or 0.28 percent, at 1,264.20. The Nasdaq Composite Index <.IXIC> gained 6.19 points, or 0.27 percent, at 2,288.97.

Handsets boost LG Elec Q2, but outlook cloudy

SEOUL (Reuters) - LG Electronics Inc <066570.KS> increased quarterly earnings by 84 percent with strong results in mobile phones and at its LCD joint venture, but the South Korean firm faces a tougher second half amid a global economic downturn. LG predicted revenues would dip in the third quarter as cash-strapped consumers spend less on high-end gadgets, and its chief financial officer warned the global slowdown could last up to 18 months.

Wal-Mart's fashion show previews back-to-school

SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc presented a colorful, casual line of youthful looks for kids and teens on Saturday at a fashion show that previewed the mass-market chain's new low-cost offerings for back to school. The world's largest retailer has been careful not to accentuate the fashion quotient in its clothing offerings this year ever since a disastrous push into more stylish gear in late 2005 alienated its core customers looking for basics.

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