Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2794)	3/23/2004 6:50:13 PM
From: marginmike	Read Replies (2) \| Respond to of 116555

what is Canada's overall debt? Itr used to be very high compared to its GDP?

To: mishedlo who wrote (2794)	3/23/2004 7:03:10 PM
From: re3	Respond to of 116555

you need any petro-canada shares in your collection? Federal government to sell Petro Canada stake Canadian Press Tuesday, March 23, 2004 ADVERTISEMENT OTTAWA -- The federal government says it will sell its 19 per cent stake in Petro-Canada, a long-expected move that could mean a windfall of more than $2 billion for the federal treasury. The announcement by Finance Minister Ralph Goodale came out before markets opened Tuesday and ahead of Goodale's scheduled release of the federal budget later in the day. The government's decision to sell its remaining stake in the former Crown corporation had been anticipated. About half the money Ottawa receives from the sale is expected to go toward debt repayment next year, and some would help fund pre-election promises. While Ottawa's stake in Petro-Canada is worth about $2.8 billion, the government is expected to generate a net gain of more than $2 billion because some of the value of the shares has already been booked on the government's accounts. Analysts have said the timing of a sale isn't bad, with major oil companies in demand because of high energy prices. If the government decides to sell all the shares on the stock market, it would be the largest equity issue ever placed in Canadian financial markets, oil analyst Wilf Gobert said Tuesday. That could provide a windfall of between $55 million to $110 million in profits for brokerages on Bay Street and in the United States, which would expect to charge fees of between two and four per cent on such a large stock distribution. ''When you consider that the average oil and gas financing might be $100 million - $200 million would be a big deal - this one is $3 billion, the largest in the history of Canadian equities,'' Gobert, with Calgary-based Peters and Co., said in an interview with ROBTv, a specialty business cable channel based in Toronto. Meanwhile, a union that represents the oil company workers called the move ''bad business and a betrayal of Canadian interests.'' ''Canadians want and need a role in our oil and gas industry, and now is no time to sell off Canada's gas station,'' said Brian Payne, president of the Communications, Energy and Paperworkers Union of Canada. ''Our investment in Petro-Canada should stay where it is and not be turned into an election fund for the Liberals and a windfall for investment brokers. I can't think of a better way to alienate Petro-Canada's loyal customers than by selling out to U.S. investors.'' However, Petro-Canada welcomed the pending stock sale, saying it ends months of speculation in financial markets. ''The government has been a supportive shareholder all along so this change will not affect our business strategy or daily operations,'' said spokeswoman Michelle Harries. ''The timing of the sale is up to the government, but when it happens we will work collaboratively with them to ensure an effective placement of the shares in the market. ''It's too early to predict if we would buy back some of the government's shares. We would evaluate the opportunity against existing market conditions and other investment opportunities available to us at the time.'' The Calgary-based company's stock price surged to all-time highs of $70 at the beginning of this year but fell back below $60 recently when Petro-Canada cut its proven energy reserves by five per cent and predicted a drop in production. Share prices (TSX:PCA) traded Tuesday at $55.63, down $1.27 on the day. Created in 1975 under the Liberal government of Pierre Trudeau, Petro-Canada was designed as a vehicle to protect Canada's domestic energy supplies and to open a window for Ottawa to keep an eye on the crucial sector. Through acquisitions, the Calgary-based company grew rapidly, becoming one of Canada's energy giants, with oil production off the East Coast, a big presence in the Alberta oilsands, natural gas production, a growing international business and a string of gasoline stations across Canada. Some analysts have speculated that Petro-Canada may buy back millions of its shares because the company is generating lots of cash from its operations. Federal restrictions preventing any single investor or related group of investors from owning more than 20 per cent of the company could shut out large international firms, but some pension funds may be interested. Petro-Canada is one of only two major integrated oil producers and gasoline marketers in Canada not controlled by foreign companies. The other is Suncor Energy, mainly an oilsands producer and gasoline seller. Imperial Oil, owner of the Esso gasoline station network, is owned by global giant Exxon Mobil Corp. while Shell Canada is owned by the Royal Dutch Shell group. Privatization of Petro-Canada began in 1991 under then-prime minister Brian Mulroney and his Conservative government. But the real selloff of shares came under one of Paul Martin's first budgets in 1995, when about 50 per cent went on the auction block.