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Reuters Canada Business Summary

08/09/08

Bailout stings Fannie, Freddie stocks, bolsters debt

NEW YORK (Reuters) - Shares in mortgage finance companies Fannie Mae and Freddie Mac plunged while their debt soared Monday, one day after the U.S. government took over the companies, as investors bet the action would wipe out stockholders but fully guarantee their bonds. Equity markets around the world surged on the bailout news as hopes rose that the U.S. Treasury's plan to take control of the companies -- which together back about half of the country's $12 trillion in home mortgages -- might put at least a temporary floor under troubled financial markets.

Toronto stocks retreat as resources drag

TORONTO (Reuters) - The Toronto Stock Exchange's main index was lower at midday on Monday, retreating from a big early gain as faltering resource and tech shares overshadowed earlier enthusiasm over the mortgage bailout plan in the United States. The heavyweight materials and energy sectors led the way down as worries over demand for commodities in the face of slowing global growth hampered resource shares.

RIM the big winner in smartphone market: Gartner

HELSINKI (Reuters) - Blackberry maker RIM was the biggest winner in a slowing smartphone market in the second quarter, roughly doubling its market share from a year ago to 17.4 percent, research firm Gartner said on Monday. The market was still dominated by Finland's Nokia Oyj , which sold 15.3 million phones with capabilities like e-mail and navigation, giving it a 47.5 percent share. But this was down from 50.8 percent a year ago as competition intensified in the consumer smartphone market.

Canadian dollar rises on renewed appetite for risk

TORONTO (Reuters) - The Canadian dollar rose versus the U.S. dollar on Monday given higher oil prices, unexpectedly strong domestic data and more appetite for risk after news that the U.S. government took control Fannie Mae and Freddie Mac. Domestic bond prices were lower right across the curve as news over the weekend of the bailout plan for the battered U.S. mortgage giants sapped investor demand for more secure assets like government debt.

Sentry Select buys hedge fund Waterfall Investments

TORONTO (Reuters) - Canada's Sentry Select Capital Corp said on Monday it has acquired hedge fund manager Waterfall Investments Inc through a subsidiary it created with C.A. Bancorp . Sentry did not disclose the financial terms of the deal.

Verenex Energy to review strategic alternatives

CALGARY, Alberta (Reuters) - Verenex Energy Inc , a Canadian oil and gas explorer operating in Libya, could soon be sold as the company on Monday launched a strategic review to boost its share price. The company, which in July announced a big oil find on its properties on Area 47 in Libya's Ghadames Basin, has not yet settled on a sale of the company. But finding a buyer may be the result of the strategic review.

Eni to buy First Calgary in C$923 million deal

MILAN (Reuters) - Italy's Eni SpA has agreed to buy Canada's First Calgary Petroleums Ltd in a cash deal worth C$923 million ($865 million), the latest in a series of acquisitions aimed at boosting its oil and gas reserves. "The transaction is in line with our strategy of increasing our presence in our core countries, acquiring high potential assets," Eni Chief Executive Paolo Scaroni said in a statement on Monday.

Sherritt says Cuban ops little affected by Ike

TORONTO (Reuters) - Sherritt International said on Monday that it was business as usual at all of its Cuban operations after Hurricane Ike ripped through the island. The Canadian company, which has extensive metals, coal and oil operations in Cuba, said it was still assessing what effect the hurricane, classified as Category 2 strength with winds near 100 miles an hour, has had on its operations.

Shermag's creditor protection extended

TORONTO (Reuters) - Canadian furniture maker Shermag Inc said on Monday that a Quebec court has extended its creditor protection status to allow it to develop a plan of arrangement to propose to its creditors. The Sherbrooke, Quebec-based company has been under court protection since May. The new order extends the stay of proceedings against Shermag and its subsidiaries until December 10.

Fairfax to buy Polish reinsurer for $72 million

(Reuters) - Canada-based insurance and asset management company Fairfax Financial Holdings Ltd said it offered to acquire a Polish reinsurer for about $72 million to expand its presence in Central and Eastern Europe. Fairfax said it received commitments to the tender offer from shareholders holding about 47 percent of the target company, Polskie Towarzystwo Reasekuracji Spolka Akcyjna.

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