Tories set to confirm final ruling that stops Radarsat sale to U.S. firm
- The Conservative government is set to confirm a final decision on whether Canada's biggest space technology firm will be sold to an American buyer.
Industry Minister Jim Prentice shocked many industry observers last month when he rejected the sale of Vancouver-based MacDonald, Dettwiler and Associates Ltd., (TSX:MDA) to Alliant Techsystems Inc., of Minnesota.
Prentice said the sale did not appear to be of net benefit to Canada, and Prime Minister Stephen Harper trumpeted the decision in the House of Commons.
The appeal period ends Thursday and Prentice indicated an announcement is forthcoming.
"We continue to have a vibrant space program," Prentice said Wednesday in Washington when asked about the deadline.
"MDA has always been part of that, and I anticipate that will continue."
MDA is the maker of the state-of-the-art Radarsat 2 satellite which monitors Canada's Arctic sovereignty. The company also designed and built the iconic Canadarm and Dextre robotics for the International Space Station.
Journalists were issued a timely invitation Wednesday by the Canadian Space Agency to view the first emergency-site use of Radarsat 2 satellite imagery that tracked extensive flooding in New Brunswick.
The proposed $1.325 billion sale of MDA's taxpayer-subsidized space division to ATK caused a storm of controversy. Critics, including prominent voices from Canada's scientific and engineering communities, said Canada would be losing intellectual property that took decades to develop while casting into doubt government control over satellite images that are critical to maintaining Arctic sovereignty.
When Prentice rejected the deal, it was the first time a foreign takeover had been shunned outright by any Canadian government since the Canada Investment Act came into effect in 1989.
Prentice, in Washington to give a speech on border issues to businessmen and politicians, dodged a question on whether any U.S. interests have given him grief over the ruling.
"I've followed the process outlined in the legislation," he said. "That's not part of the process that I followed in terms of reviewing the transaction."
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