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CA-BUSINESS Summary

05/12/08

Alternative plan to LBO floated for BCE: source

NEW YORK/TORONTO (Reuters) - Some of the private equity buyers of BCE Inc , Canada's biggest telecom company, are floating an alternative deal to the C$34.8 billion ($28.3 billion) leveraged buyout that was put in jeopardy a week ago, a source familiar with the situation said. The plan would involve the buyers -- led by the Ontario Teachers' Pension Plan -- investing C$8 billion to C$10 billion for a stake in the company, which would remain a publicly-listed entity, the source said.

Four Canadian banks report, profit falls at three

TORONTO (Reuters) - Three of four Canadian banks reported lower profits on Thursday, but the results of the big players were either in line with market expectations or with the banks' own warnings in recent weeks. "I would categorize today as a no-big-surprise day, which is a good thing in this environment," said Craig Fehr, a financial services analyst at Edward Jones.

TSX rattled by weak oil, political turmoil

TORONTO (Reuters) - The Toronto Stock Exchange's main index fell to its lowest close in two weeks on Thursday as a slide in oil prices shook the resource-heavy market, while the suspension of Canada's Parliament weighed on sentiment. Oil prices fell more than 6 percent to their lowest level in almost four years, pulling Toronto's heavily weighted energy sector down 7.46 percent.

Toyota opens new Ontario plant, brings 1,200 jobs

TORONTO (Reuters) - Toyota Canada Inc <7203.T> cut the ribbon on a new C$1.1 billion ($859 million) assembly plant in Woodstock, Ontario on Thursday, bringing about 1,200 new jobs to a sector that has been losing jobs rapidly. The plant is assembling the RAV4, a compact sports utility vehicle, and will produce up to 100,000 vehicles a year in Woodstock, a small city of around 36,000 people, known for its tree-lined streets and Victorian homes, about 140 kilometers (88 miles) southwest of Toronto.

Senators grill auto CEOs, GM-Chrysler deal eyed

WASHINGTON (Reuters) - The chief executives of General Motors Corp and Chrysler LLC said they would consider restarting merger talks if needed to win their slice of up to $34 billion in emergency U.S. government aid. "I would be very willing to look at it seriously," GM CEO Rick Wagoner told the Senate Banking Committee on Thursday, adding that merger talks earlier this year were dropped on concerns GM did not have the financing to merge with Chrysler.

Loonie falls as opposition still aims to oust Canada government

TORONTO (Reuters) - The Canadian dollar fell nearly 2 percent in less than 90 minutes on Thursday after leaders of opposition parties said they still aim to oust the country's Conservative government from power. They were responding to a decision by Canada's governor general to allow Parliament to be suspended until January, giving the Conservative government a chance to regroup following a parliamentary crisis.

November job losses expected in Canada

OTTAWA (Reuters) - Canadian job losses likely began in earnest in November as the economy stagnated, following three straight months of surprisingly strong employment growth, analysts said on Thursday. Employers are expected to have shed 25,000 workers in the month, according to the median forecast of analysts in a Reuters poll. They also forecast the unemployment rate would rise to 6.4 percent from 6.2 percent in October, the highest level since September 2006.

Oil steadies below $44

SINGAPORE (Reuters) - Oil was steady below $44 on Friday, near its lowest level in almost four years, with eyes turning to the psychologically important $40 level as a widening economic slowdown gnaws into oil demand. Prices have lost nearly 20 percent from their settlement a week ago, and are on course for their steepest weekly decline since March 2003, following the release of weak U.S. economic data, with lower retail sales and a 26-year high in jobless benefits rolls the latest to add pressure to prices.

TD Bank CEO sees "reasonable" 2009 earnings increase

TORONTO (Reuters) - Toronto-Dominion Bank should see profit growth in 2009, thanks to a full year's contribution from its Commerce Bank network in the United States, as well as momentum in its Canadian retail operations, the bank's chief executive said on Thursday. "It is realistic to expect that we will see a reasonable increase in absolute earnings in 2009, and an increase in earnings per share," President and CEO Ed Clark told a conference call.

Bombardier earnings beat estimates

TORONTO (Reuters) - Bombardier said on Thursday that quarterly earnings more than doubled, helped by an 8 percent rise in revenue, but new orders for both airplanes and trains fell as tough economic conditions weighed on demand. Net income rose to $245 million, or 14 cents per share, in the third quarter ended on October 31 from $91 million, or 5 cents per share, a year earlier.

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