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CA-BUSINESS Summary

19/05/09

Latest deadline nears in Canwest talks with creditors

TORONTO (Reuters) - Yet another deadline looms later on Tuesday in talks between Canwest Global Communications Corp and the media company's lenders and noteholders as it fights to shore up its balance sheet amid a steep drop in advertising. Canwest, Canada's biggest media company, has spent recent months in talks with its lenders as well as investors holding its 8 percent notes.

Ottawa says GM-CAW deal must be in place by May 31

TORONTO/ATLANTA (Reuters) - General Motors Corp and the Canadian Auto Workers must have a cost-savings deal in place by May 31 to qualify for a government rescue package, the industry minister said on Tuesday, days after the two sides failed to meet an earlier target date. Ottawa had set a deadline of May 15 for the two sides to substantially reduce labor costs to help the company qualify for long-term federal and provincial aid, but no agreement was reached and the bargaining continues.

Oil helps TSX surge in catch-up rally

TORONTO (Reuters) - Toronto's main stock index rallied sharply higher on Tuesday, reclaiming most of last week's losses, as higher oil prices boosted energy issues and as it caught up with rises on U.S. stock markets on Monday, when the Toronto market was closed for a holiday. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> unofficially closed up 324.02 points, or 3.32 percent, at 10,086.87, with all of its 10 main groups in the black.

Viterra to buy Australia ABB for $1.2 billion

SASKATOON, Saskatchewan (Reuters) - Canada's top grain handler, Viterra Inc , said on Tuesday it has reached an agreement to buy Australia's ABB Grain Ltd for $1.2 billion in cash and stock, giving Viterra access to growth markets in Asia. Viterra's acquisition of ABB Grain Ltd would add "meaningfully" to earnings in the new company's first year of operations, Viterra President and Chief Executive Mayo Schmidt said.

Jazz Air units leap as distribution held steady

VANCOUVER, British Columbia (Reuters) - Units of Jazz Air Income Fund surged on Tuesday after the airline didn't cut its monthly distribution to unitholders as some investors feared it might. Jazz Air's units leaped as much as 15.8 percent to C$3.22 on the Toronto Stock Exchange after the fund declared its usual monthly 8.38 Canadian cents payout per fund unit for May. The stock closed at C$3.03, up 25 Canadian cents or 9 percent.

Bank of Canada sees little need for more stimulus

PHILADELPHIA (Reuters) - Canada has less need than other countries to boost its economy with unusual steps like printing money to buy assets, a Bank of Canada official said on Tuesday, hammering home the message that it has done enough to combat the recession. "Canada has not been subject to many of the imbalances and vulnerabilities that have affected other countries, and has had less need for unconventional measures," Deputy Governor John Murray said in a speech in Philadelphia.

Oil hits 6-month high on U.S. refinery problems

NEW YORK (Reuters) - Oil prices rose on Tuesday, touching a six-month high over $60 a barrel as a flurry of U.S. refinery problems stoked supply fears leading into peak summer driving season. U.S. crude settled 62 cents higher at $59.65 a barrel, after earlier reaching $60.48 a barrel, the highest level since November 11. London Brent rose 45 cents to settle at $58.92 a barrel.

Book says ex Quebec pension chief devalued assets

TORONTO (Reuters) - A newly published book says the former chief of Canada's top pension fund, Caisse de depot et placement du Quebec, devalued the fund's assets in 2002 as he ushered in a bonus and banking culture at the storied institution. "La Caisse dans tous ses etats", or "The Caisse in all its Stages", looks at the fund since its early days in 1965, and says its six years under the leadership of then-President and Chief Executive Henri-Paul Rousseau represented a cultural sea change.

GM bankruptcy plan eyes quick sale to government

NEW YORK (Reuters) - If General Motors Corp files for bankruptcy, as widely expected, plans include a quick sale of the automaker's healthy assets to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday. The source, who was not cleared to speak with the media and would not be identified, said the plan also called for the government to forgive the bulk of $15.4 billion emergency loans that the U.S. has already provided to GM.

Business bankruptcies drop unexpectedly: CIBC

TORONTO (Reuters) - Business bankruptcies in Canada dropped unexpectedly in the first quarter, in contrast with the trend in the United States and a sharp rise seen during previous Canadian recessions, a report released on Tuesday said. Business bankruptcies fell no less than 14 percent during the first three months of 2009 compared with the same period in 2008, according to the report by CIBC World Markets.

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