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Is the sale of Petro Canada legal?

Umm, wasn't the 20% stake sold by the Liberals in 2004. So I would guess legality is not really in question then or after the fact (or the Conservatives would have been all over it).
 
If they give it a retro rebranding, I'd be happy

signs-brit-1.jpg
 
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I still don't see what the big deal is. We have a law that's a hangover from an earlier era when the Crown owned Petro-Canada. It's depressing shareholder value and fairly discriminatory since its aimed only at Petro-Canada really. That seems to be to unfair for the investors of Petro-Can. The government wants control of the company without having to actually run the business. That does not seem fair at all.

Suncor has found a way to merge and get around this law at the same time. Good for them. If the shareholders think it's a bum deal they can vote against it. So what's the problem? I have no problem with publicly owned Canadian companies merging if their stockholders have voted to merge.

I'd be more concerned if a foreign suitor was waiting in the wings. As it stands, this merged entity will be a small giant in the global energy sector that will make it less likely to be taken over. I'd rather they merge than become individual appetizers for the energy hungry Chinese, Indians or Americans.
 
I wonder who the third party is going to be to break up the merger and let suncor and petro be foreginly owned, a la the whole inco-falconbridge fiasco.
 
Kitsune said:
I wonder who the third party is going to be to break up the merger and let suncor and petro be foreginly owned, a la the whole inco-falconbridge fiasco.
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In this case, I highly doubt they would allow that kind of a takeover. I am fairly sure there is cross-party consensus on the national security implications of allowing so much of our energy sector fall into foreign hands.
 
kEiThZ said:
In this case, I highly doubt they would allow that kind of a takeover. I am fairly sure there is cross-party consensus on the national security implications of allowing so much of our energy sector fall into foreign hands.
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oh really? I think the oil sheiks of Canada (fill in the blank if you dare) would love to rid themselves of all laws that govern the Canadian oil industry, it's what big business wants, control, all of it.

There is way more to this story to come but it appears to be elevating the Petro Canada shares....the backdoor reform appears to making everyone salivate at the moment.

Go look at how successful the Saudis have been since they nationalized their oil industry.........they have already stated that they want oil to be around $55 dollars a barrel to make their future plans (alternative renewable fuels) come to life, These guys are way ahead of the game and they know it!
 
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what would make it illegal???
 
jade_lee said:
oh really? I think the oil sheiks of Canada (fill in the blank if you dare) would love to rid themselves of all laws that govern the Canadian oil industry, it's what big business wants, control, all of it.

There is way more to this story to come but it appears to be elevating the Petro Canada shares....the backdoor reform appears to making everyone salivate at the moment.

Go look at how successful the Saudis have been since they nationalized their oil industry.........they have already stated that they want oil to be around $55 dollars a barrel to make their future plans (alternative renewable fuels) come to life, These guys are way ahead of the game and they know it!
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jade-lee, first off it's obvious that the proposed take-over is not illegal because it has not happened yet.

Second, are you proposing/promoting nationalizing oil production and distribution in Canada?

If I own shares in Canadian energy companies like so many other people in this country, does that make me a sheik?
 
You can safely assume that these companies did extensive "due diligence" before concluding the deal. This certainly would have included opinions from top lawyers as to its legality.

That said, the federal govt. will review it from the competition point of view. If certain retail markets turn out to be served by Petrocan and Sunoco, and a lack of other competitors, they could order a number of gas bars to be sold off to maintain competition.
 
Hydrogen said:
If I own shares in Canadian energy companies like so many other people in this country, does that make me a sheik?
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Yep, according to jade_lee the 1k in an Energy mutual fund in my RRSP just made me a sheikh whose investments deserve to be the target of government action.

It never ceases to amaze me how much Canadians despise success. God forbid, we should actually have a Canadian energy champion with a share price high enough that it won't be an afternoon snack for a foreign state-owned oil firm.
 
ShonTron said:
There's no need for a post like that in a thread you started without any background or information. Also note you put the thread title as a question, so no need to be so abrupt.
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http://network.nationalpost.com/np/...2009/03/23/peter-foster-sun-can-petrocor.aspx
Here is some background information compiled by the national post, the globe is also writing articles that appear to be filling in the blanks, you should check them out.
When I was speaking about "sheiks" I was not referring to mutual fund holders but instead I was referring to "The Blue-Eyed Sheiks" i.e. the Canadian Oil Establishment, the people who make all the money on our Canadian oil. Peter Foster wrote a book of the same name in the late 70"s, I've read it and recommend it to those who are interested in the evolution of the tar sands and other historical realities of oil money, public and private.

"You can safely assume that these companies did extensive "due diligence" before concluding the deal. This certainly would have included opinions from top lawyers as to its legality." WHY?
Instead I think this deal like other big corporate deals happening during this financial upheaval should be closely scrutinized because it looks like shady deals are very cultural now. I don't trust this government when it comes to their vision of a "new Canada".
 
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