Friday, April 11, 2008

US getting taste of its own medicine

April 10 (Bloomberg) -- The Canadian government rejected the C$1.33 billion ($1.31 billion) sale of MacDonald Dettwiler and Associates Ltd.'s satellite business to Alliant Techsystems Inc., marking the first time Canada has blocked a foreign takeover since at least 1985.

Industry Minister Jim Prentice wrote to Edina, Minnesota- based Alliant on April 8 to say the proposed takeover doesn't provide a ``net benefit'' to Canada, according to an e-mailed statement today from his office in Ottawa.

``It's a shot across the bow and the government knows that this will be taken very seriously, not only by the prospective buyer, but also the U.S. government,'' said Richard Clark, a lawyer with Stikeman Elliott LLP in Toronto who specializes in mergers.

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