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CA-BUSINESS Summary

25/09/08

Report says Royal Bank of Canada probed by SEC

TORONTO (Reuters) - The U.S. Securities and Exchange Commission has added Royal Bank of Canada to a list of companies it is investigating in connection with the collapse of the auction-rate securities market, the National Post newspaper said on Thursday. The newspaper said the probe by the SEC follows a parallel probe being pursued by state authorities. It said RBC is one of the first Canadian banks to investigated in connection with the market collapse.

Value Creation's oil sands upgrader halted: report

CALGARY, Alberta (Reuters) - The planned C$4 billion ($3.9 billion) Heartland upgrader, backed by the closely held Value Creation Group, has been mothballed, Canadian media reports said on Thursday. The Edmonton Journal said construction on the planned 77,500 barrel per day facility, being built at a refining hub in Strathcona County, northeast of Edmonton, Alberta, has been halted.

MDA shares plunge in wake of profit warning

TORONTO (Reuters) - Shares of MacDonald, Dettwiler and Associates plunged more than 15 percent on Thursday, a day after the company warned that a downturn in the British housing market will cut its third-quarter profit. The Canadian aerospace and real estate data services firm also said late on Wednesday that it will restructure its British operations so they can continue on at least a break-even basis with the reduced business volumes.

Toronto stocks pop up on oils, U.S. bailout hopes

TORONTO (Reuters) - The Toronto Stock Exchange's main index moved back into positive territory in choppy action on Thursday, as energy shares strengthened amid optimism the U.S. could be close to a deal on its huge bailout plan. The S&P/TSX composite index <.GSPTSE> was up 1.18 points at 12,514.54 in the early afternoon.

Corus issues 2009 free cash flow, profit forecasts

OTTAWA (Reuters) - Canadian media and entertainment company Corus Entertainment Inc is targeting free cash flow of C$70 million ($67.3 million) to C$90 million and consolidated profit between C$270 million and C$280 million. Free cash flow refers to earnings before depreciation and amortization, but includes capital expenditures.

GE slashes profit outlook on finance troubles

BOSTON (Reuters) - General Electric Co warned that turmoil in global credit markets could drive profit down as much as 12 percent this year, confirming Wall Street's fears about the vulnerability of the company's finance arm. Two of GE Capital's biggest businesses are loans to mid-sized companies and investments in commercial real estate. Both businesses have been hammered by the credit crunch, which complicates closing real estate deals, while the slowing economy raises the risk of default on some of its loans.

ACE poised to buy rest of Air Canada: analyst

CALGARY, Alberta (Reuters) - Air Canada's parent company is poised to buy back the 25 percent of the country's biggest airline it doesn't already own for C$215 million ($209 million), a veteran analyst predicted on Thursday. Air Canada shares surged more than 15 percent, or 65 Canadian cents, to C$4.85 on the Toronto Stock Exchange. They had been down 69 percent in the previous 12 months.

Oil pares losses on bailout hopes

LONDON (Reuters) - Oil fell on Thursday but moved up from session lows in response to hopes of agreement on a proposed U.S. $700 billion financial sector bailout plan. Prices had fallen more than $2 initially, pressured by further evidence of U.S. economic weakness that has begun to affect demand for oil.

Medtronic to buy CryoCath for $380 million

CHICAGO (Reuters) - Medtronic Inc said on Thursday it agreed to buy Canada's CryoCath Technologies Inc for about $380 million (C$400 million) in a bid to strengthen its position in the growing market to treat atrial fibrillation, or abnormal heart rhythms. The acquisition puts Medtronic, a maker of heart pacemakers, stents and spinal devices, on track to launch an important CryoCath product early in the 2011 fiscal year, which begins in May, Citibank analyst Matthew Dodds said.

Dollar rises vs broadly weaker greenback

TORONTO (Reuters) - The Canadian dollar rose against a broadly weaker U.S. dollar on Thursday as U.S. weekly jobless claims data painted a bleaker picture of the economy and investors worried about delays to the U.S. rescue package for the financial sector. Canadian bond prices were mixed as the market waited for news on the U.S. plan, which is working its way through Congress.

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