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CA-BUSINESS Summary

03/11/09

GM opts to keep Opel, scraps sale to Magna

DETROIT/FRANKFURT (Reuters) - General Motors reversed course on Tuesday by abandoning a long-expected sale of its Opel to a group led by Canadian auto supplier Magna and opting to keep the European unit after a year of uncertainty and high-stakes political negotiations. GM said improving business conditions and the strategic importance of Opel had prompted the unexpected move by its 13-member board of directors appointed in the wake of its own bankruptcy just four months ago.

TSX rides railways, gold price to higher close

TORONTO (Reuters) - Toronto's main stock index shot higher on Tuesday as gold prices hit a record high above $1,080 an ounce, boosting Barrick Gold Corp and other gold miners. Barrick rose 6.6 percent to C$41.97 and Goldcorp climbed 7 percent to C$42.96. Yamana Gold shot 7.6 percent higher to C$12.54. The index's materials group, home to miners and fertilizer companies, finished the day up 4.1 percent.

Imperial Oil CEO "dismayed" by Mackenzie reports

CALGARY, Alberta (Reuters) - Ottawa has said nothing to sway Imperial Oil Ltd from plans for the Mackenzie Valley gas pipeline, despite a media report that appeared to cast the C$16.2 billion ($15.1 billion) project into more doubt, Imperial's chief executive said on Tuesday. Imperial, lead partner in the Arctic pipeline proposal, is proceeding with the groundwork and waiting for a crucial regulatory report due next month, CEO Bruce March said.

Canada auto sales have best month in a year in October

DETROIT (Reuters) - Canadian auto sales had their best performance in the past year in October, just narrowly missing positive territory, according to industry figures released on Tuesday. Overall Canadian sales were down 1 percent from a year earlier at 121,500 units, according to data from DesRosiers Automotive Consultants Inc.

Buffett buying Burlington rail in his biggest deal

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc will pay $26 billion to buy out Burlington Northern Santa Fe Corp in a bet the nation's largest rail company will benefit from a recovering U.S. economy. The deal, announced on Tuesday, is the billionaire investor's biggest-ever acquisition and may prompt him to sell some of his other investments, which include a wide range of companies from Coca-Cola Co to General Electric Co , some Buffett watchers said.

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.

Oil sands developer Opti may opt to sell itself

CALGARY, Alberta (Reuters) - Oil sands developer Opti Canada Inc said on Tuesday it may seek a buyer as part of a review of strategic alternatives with the pace of takeovers in the country's energy sector picking up. The move comes as Opti tries to deal with its flagging share value as the price of oil strengthens but its main project struggles to produce reliably in its early months.

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 is boosting spending on its unconventional gas holdings, raising its budget by C$900 million ($841 million) to buy and drill shale-gas properties even as it reported a 98 percent drop in third-quarter profit. The company, Canada's No. 3 independent oil explorer, said on Tuesday that 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 as oil and gas prices plunged, production fell and costs rose.

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.

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