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CA-BUSINESS Summary

03/11/09

TSX erases early skid as gold miners rally

TORONTO (Reuters) - Toronto's main stock index was higher on Tuesday as Barrick Gold Corp and other gold miners rallied on rising gold prices, while a surge in railway stocks helped to reverse the index's early triple-digit skid. Barrick shares rose 5.9 percent to C$41.70, while Goldcorp followed with a gain of 5.5 percent to C$42.35.

Buffett to buy Burlington Northern in his biggest deal ever

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc will pay $26 billion to buy out railroad Burlington Northern Santa Fe Corp in what the billionaire investor called a bet on the U.S. economy. The deal, Buffett's biggest-ever acquisition, marks new interest in a storied but highly cyclical American industry that has tried to reinvent itself by emphasizing its ability to move goods cheaply and efficiently.

Imperial Oil CEO says still in talks on Mackenzie

CALGARY, Alberta (Reuters) - Imperial Oil Ltd is still talking to the Canadian government about a fiscal framework for the C$16.2 billion ($15.1 billion) Mackenzie Valley natural gas pipeline, the company's chief executive said on Tuesday. A newspaper report last week said the federal cabinet had rejected a financial support package for the line. However Bruce March told reporters the company was still talking to the government about a package of measures to ensure the line is economically viable.

Magna, labor at GM's Opel agree cost cuts

FRANKFURT (Reuters) - Opel's labor force has agreed to contribute 265 million euros ($390 million) in annual savings if General Motors finally sells a majority stake in its European arm to a group led by Canada's Magna. "The cuts are painful for us all, but we are prepared to assume responsibility," Opel labor leader Klaus Franz said in a statement on Tuesday announcing the accord with Magna after weeks of talks with workers across Europe.

Saputo profit up 37 percent, spurred by Neilson buy

TORONTO (Reuters) - Canadian dairy products company Saputo Inc said on Tuesday its quarterly profit rose 37 percent, helped mainly by its 2008 acquisition of Neilson Dairy. Montreal-based Saputo, Canada's biggest cheese maker, said it earned C$94.5 million ($88.5 million), or 45 Canadian cents a share, in its second quarter, ended September 30, up from C$69 million, or 33 Canadian cents a share, a year earlier.

Talisman profit falls, boosts shale gas holdings

CALGARY, Alberta (Reuters) - Talisman Energy Inc said on Tuesday its third-quarter profit plunged 98 percent on lower production and a big drop in oil and gas prices, even as it accelerated a move to concentrate on new shale gas plays. The company, Canada's No. 3 independent oil explorer, said its net income fell to C$30 million ($27.9 million), or 3 Canadian cents a share, down from C$1.4 billion, or C$1.40 a share, a year ago.

Three miners die in mine accident in Quebec

TORONTO (Reuters) - Metanor Resources Inc said on Tuesday the bodies of all three missing miners have been found following an accident at its Bachelor Lake gold mine in northwestern Quebec. The accident occurred late on Friday, when a section of the mine about 500 meters (1,600 feet) below the surface flooded. The junior Canadian gold miner has suspended operations at the site.

Lloyds, RBS agree to massive shake-up

LONDON (Reuters) - Britain's two largest retail lenders are to get another 31 billion pounds from the government and have agreed to sell hundreds of branches and key businesses to appease EU competition concerns over state aid. The deal announced on Tuesday paves the way for Britain to begin reducing its holdings in Royal Bank of Scotland and Lloyds Banking Group , a potentially critical source of funds as the country struggles with a ballooning budget deficit.

Loonie slips but off overnight low, bonds up

TORONTO (Reuters) - Canada's currency was slightly weaker but off overnight lows against the U.S. currency on Tuesday, hurt by less risk appetite arising from concerns about the European banking sector. The Canadian dollar was among several in a basket of currencies to be hit by risk aversion, which put the U.S. dollar on a course higher.

Oil rises above $79 on U.S. factory data, gold surge

NEW YORK (Reuters) - Oil rose above $79 a barrel on Tuesday after data showed U.S. factory orders in September expanded at a quicker pace than expected, signaling potential for more fuel demand in the world's biggest energy consumer. Factory orders rose 0.9 percent in September, surpassing Wall Street analyst expectations, and factory inventories fell.

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