Thursday, April 10, 2008

No on MDA sale, for now

Before we give the Conservatives credit for halting this sale, let's see how it all plays out. Jim Prentice has put the brakes on the Canadian space company's sale to a U.S. suitor, for now. There's this cryptic note in the Globe article that hints that the initial stance by the government could change:
When contacted by The Globe and Mail Wednesday night, Alliant officials responded with a two-sentence statement that indicated that they are not willing to declare the deal dead.

“We have been in discussions with the minister's office. Your information is not consistent with those discussions,” the statement said.
That's interesting. Let's see what MDA/Alliant do:
Under Canada's investment-review law, the company has 30 days to make new arguments to the minister, and Mr. Prentice must then confirm his rejection.
Looks like a good decision, we'll see if it holds up. This may all be about negotiation.