Thursday, April 10, 2008

MDA sale blocked!

Blocked! Yes, the Conservative MINORITY government finally listened to the people of Canada, a first, and blocked the sale of the MDA space division to ATK, an American weapons manufacturer. After much public, and private I imagine, pressure, Industry Minister Jim Prentice, blocked the transaction from taking place realizing that there was NOT a net benefit to Canada. This comes after the decision to allow the purchase of BCE, by the Ontario Teachers Pension Fund. His allowing of the BCE buyout was on the condition that the company's control be firmly maintained in Canada. I guess he saw the pending contradiction if he where to allow the MDA sale to go through. People may say that won't this hurt MDA's share value? Over the longterm, NO. If you remember the changes made by the Conservatives to Income Trust Regulations a little while ago, analysts where running around saying the demise of Canadian Investment was near. Well, it never came and Canada is doing quite well thank you very much. Other than the CIBC, we where sheltered from the ABCP meltdown from the sub-prime mortgage collapse. Canadians just aren't as greedy as American. Our institutions just don't hand out mortgages and loans to those that don't or just barely qualify. Well, to all those individuals and groups that expressed your concern about MDA to those involved, Thank You. See, we can have a voice in how the government acts and spends our money. We'll talk soon.

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