Mark McQueen, writing on the Wellington Financial blog, has certainly made it clear that he supports Ottawa's decision to quash Alliant Techsystems Inc.'s attempted purchase the satellite division of MDA Corp. (or MacDonald Dettwiler & Associates Ltd.).
The decision, reported by The Globe and Mail, effectively kills the prospect of Canada's leading satellite technology falling into U.S. hands. That's good news for economic nationalists, who have seen Canada's corporate gems slip away in recent years. But investors will point to the fact that MDA's share price has skidded 9 per cent in early trading on Thursday, raising alarms over whether Ottawa is beginning to meddle in affairs that are not of its concern. The decision, after all, is unprecedented.
Mr. McQueen is on the side of the nationalists on this one. “Having watched Inco, Falconbridge, Dofasco, et al slip away on their watch, the current federal government's reputation as a laissez-faire, free market crew was well burnished. But if you are at all a grassroots politician with a feel for the mood of the Nation, as Minister Prentice certainly is, you understand that there is something discomforting about selling a key element of your space industry to foreigners....”
“Once shareholders get over bitching about a protectionist government (remember the income trust announcement?, they'll say) MDA management will be left to work with Alliant to cook up a new proposal,” he wrote.
