Thursday, April 10, 2008

Prentice blocks sale of MDA to U.S. firm

This is certainly the right move (or is it a left move?). It also shows that the Harper govt. has enough spine to face up to the possible negative reaction from the U.S. We will have to wait until the appeal process finishes however to know what the ultimate outcome will be. Perhaps Harper was concerned about the negative political fallout from the sale. Certainly Harper will gain some support from some Canadian nationalists for this move. This is from the CBC.
The federal government on Thursday blocked the $1.3-billion sale of the space technology division of Vancouver-based MacDonald, Dettwiler and Associates to a U.S. firm.

In a letter this week to Alliant Techsystems Inc., Industry Minister Jim Prentice said he is not satisfied the sale will be a net benefit for Canada, the minister confirmed Thursday.

Alliant has been given 30 days to state its case to win approval for the sale.

No comments: