Ottawa 'not satisfied' sale of Radarsat maker MDA is in national interest
Bruce Cheadle, The Canadian PressApril 10, 2008 - 9:49 a.m.
OTTAWA - The federal government has served notice it is set to squelch the controversial sale of Canada's most famous space technology maker to an American armament company.
Industry Minister Jim Prentice confirmed Thursday morning that he wrote to Alliant Techsystems Inc. on April 8 to advise the U.S. company that, "based on the information received at this time," he is not satisfied that the proposed sale of MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) is likely to be of net benefit to Canada.
Minnesota-based Alliant has 30 days "to make representations and submit undertakings" in an attempt to alter this position.
The most valued asset in the proposed $1.325-billion transaction is the Radarsat 2 satellite, which represents a C$445-million taxpayer investment and decades worth of intellectual property development.
MacDonald, Dettwiler and Associates of Vancouver wants to sell its entire space technology division, including the Radarsat 2, Canadarm and Dextre space robot to Alliant, but the deal has faced growing unease over national security and sovereignty concerns.
Prentice had until April 19 to approve or reject the sale under the Investment Canada Act.
The Commons foreign affairs committee had unanimously agreed Tuesday to hold hearings on the proposed sale, criticized as a sell-off of taxpayer-funded technology that is critical to the national interest...
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b041033A
Stumble It!
They should simply define clear rules from the outset on this sort of thing - and I think this should include strategic resources as well, such as water and oil. Absolutely MUST be owned by a Canadian registered company located in Canada.