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CA-BUSINESS Summary

19/10/09

Potash Corp takeover speculation lifts TSX

TORONTO (Reuters) - Toronto's main stock index finished higher on Monday, pushed up by speculation that Potash Corp of Saskatchewan could be taken over, and by firmer commodity prices. The S&P/TSX composite index <.GSPTSE> unofficially closed up 39.43 points, or 0.34 percent, at 11,544.19.

Dollar extends gains ahead of rate announcement

TORONTO (Reuters) - The Canadian dollar was higher against the greenback on Monday afternoon, rising on firm commodity prices and ahead of the Bank of Canada's interest rate announcement on Tuesday. The rally was aided also by a weaker U.S. dollar as investors bet the Federal Reserve will hold U.S. interest rates near zero well into next year.

Domestic strength to underpin Canada profits: CIBC

TORONTO (Reuters) - Strong consumer and business spending should help Canadian companies withstand the competitive pressures of the soaring Canadian dollar, CIBC World Markets said an earnings preview on Monday. With companies such as Canadian National Railway and Potash Corp set to issue financial reports this week, CIBC said third-quarter earnings will help gauge the ability of corporate Canada to weather the impact of the rising currency, which is up 13 percent since the end of June.

Terra sees profit slide, potential plant buy

NEW YORK/TORONTO (Reuters) - Fertilizer maker Terra Industries Inc said on Monday weak agricultural and industrial demand would shrink its quarterly earnings by 74 percent, pushing its shares lower in early trading. Terra also announced it would buy a 50 percent stake in a nitrogen fertilizer plant for $250 million from Agrium Inc if Agrium was able to complete a hostile takeover of rival CF Industries .

Gold rises to $1,060 an ounce on weak dollar

NEW YORK/LONDON (Reuters) - Gold rose nearly 1 percent on Monday, as a dollar drop boosted bullion's appeal as a hedge against the weakening value of paper assets due to currency depreciation. Gold's recent movements were largely led by currency markets, as investors fretted over economic uncertainty after governments and central banks pumped massive liquidity to battle recession.

QLT gets rights to sell Visudyne in US

(Reuters) - Canadian eye-care company QLT Inc said it restructured its pact with Novartis Pharma AG , giving it exclusive rights to sell anti-blindness treatment Visudyne in the United States. The company, which shares revenue from Visudyne sales with global marketing partner Novartis, said it will also have rights to all end-user revenue derived from Visudyne sales in the country.

China to build huge potash base in Canada: report

BEIJING (Reuters) - China's Zhongchuan International Mining Corp, has signed a deal to build a huge potash base in the Canadian province of Saskatchewan to ease its own tight supply of the fertilizer, the official Xinhua news agency said on Monday. The deal will allow the private Chinese mining firm to explore potash in an area covering 96 square kilometers, with an expected annual production capacity of 3 million tons, Xinhua said, without naming its source for the information.

New Gold Q3 gold sales rise 16 percent

(Reuters) - New Gold Inc reported a 16 percent rise in quarterly gold sales, and the mid-sized gold miner maintained its 2009 gold production forecast. Gold sales rose to 77,645 ounces in the third quarter from 67,156 ounces in the same period a year ago, helped by higher production at Cerro San Pedro mine in Mexico and Peak mines in Australia.

Shares of Silicon producer Timminco soar again

VANCOUVER, British Columbia (Reuters) - Shares in Timminco Ltd soared for a second day on Monday after the Canadian silicon maker's twin announcement last Friday of improved shipment figures to the solar energy market and an increase in non-solar metal production. Timminco's stock rocketed as much as 78 percent to C$3.08 on the Toronto Stock Exchange in heavy trade on Monday, possibly on short-covering in anticipation that the stock will rise more, Clarus Securities analyst Carolina Vargas said.

Potash Corp shares rise on takeover speculation

TORONTO (Reuters) - Shares of Potash Corp of Saskatchewan rose 5 percent on Monday, after a research report touted the idea that mining giant BHP Billiton could afford making an all-cash bid for the world's largest fertilizer maker. Bank of America Merrill Lynch analyst Jason Fairclough suggested that an all-cash bid for Potash Corp at a 30 percent premium could add to BHP earnings by 13 percent within a year or two of closing an acquisition.

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