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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, but markets bet on an offer higher than the current 8.8 percent premium to the previous closing share price.

Toronto stocks rise on TransAlta bid, bank results

TORONTO (Reuters) - Toronto's main stock market index climbed 1 percent at the open on Monday before giving back some gains, as a takeover bid for TransAlta Corp and stronger-than-expected results from Bank of America soothed worries over the global credit crunch. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 88.72 points, or 0.7 percent, at 13,604.68 after climbing as high as 13,687.13 near the start.

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."

CGI sells insurance services unit to Shumka Group

TORONTO (Reuters) - Outsourcing and information technology firm CGI Group Inc said on Monday it will sell a small unit that provides services to property and casualty insurance firms, but said it had no plans to exit that industry altogether. The unit, which provides claims adjusting and risk management services to P&C insurers, has annual revenue of about C$70 million ($70 million), CGI said. It is being sold to privately-held The Shumka Group, a Canadian claims-management firm.

Oil gives back gains despite Iran, tropical storm

LONDON (Reuters) - Oil gave back most of its gains of more than $3 during trading on Monday, as worry over Iran and a storm in the Gulf of Mexico were not enough to sustain a price recovery after the biggest one-week slide on record. U.S. light crude for August delivery fell back below $130 having been as high as 132.05.

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.

Private equity bids C$39 a share for Transalta

CALGARY, Alberta (Reuters) - LS Power Equity Partners and Global Infrastructure Partners said on Monday they plan to buy wholesale power generator and marketer TransAlta Corp in a C$39-per-share, all-cash deal, worth about C$7.75 billion ($7.67 billion). The proposal is a 21 percent premium to the closing price of C$32.25 of TransAlta's common stock on Friday on the Toronto Stock Exchange, and a premium to the stock's 52-week and all-time high, LS Power and GIP said in a statement.

Wall Street flat as drug stocks fall, offset banks

NEW YORK (Reuters) - The Dow briefly turned negative and the S&P 500 pared gains to trade little changed on Monday as Merck & Co led a slide in the shares of pharmaceutical companies, offsetting gains by financial shares. The Nasdaq was also little changed. A rebound in oil prices added to the market's cautious tone.

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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