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Inco fails in bid for Falconbridge

ANDY HOFFMAN AND JACQUIE MCNISH

Globe and Mail Update

Latest comment posted at 5:09 PM EDT 28/07/06

Gives up offer, handing victory to all-cash bid from Xstrata ...Read the full article

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  1. Mel Garejo from Toronto, Canada writes: Bad new for the average Canadian. I don't see how Industry Canada let the deal go thru.
  2. William Stos from Ottawa, Canada writes: Very bad news for places like Sudbury. An INCO Falconbridge merger would have meant billions in upgrades. Now they'll remain cross-town rivals, but in foreign hands. Sad.
  3. M. Overton from Calgary, Canada writes: How is this bad for the average Canadian? They won't even notice! I bet most don't even know that this has been happening. Regardless, the better offer won the day. Here's to the free market!
  4. Sean U from Dublin Ireland, Canada writes: This is how the capital markets work Mel, the best bid wins. Furthermore, if Industry Canada or whoever tried to block the deal it would only continue to fuel protectionism that has becoming more prevelent the world over. Protectionism, will utimately hurt 'the average Canadian' more in the long-run. Ideally, Canadian companies should be the one's bulking up through mergers & acquisitions domestically and abroad so that they can compete with European and US juggernauts on a global scale or else we risk seeing more Canadian companies being targets of these companies.
  5. Big D from Canada writes: while I am disapointed that this saga didnt go Incos way because I hate the EU, commentors like #1 should realize we are in a global economy and have investment and trade deals in place that we can not choose to recognize only when its in our convience. Also, Canada has been a net hunter in the last 5 years of the international M&A market (we have bought more foreign companies than foreign companies buying ours in both real #s and dollar value). The peak year was 2004 when Manulife Financial close a $15 billion takeover of JHF
  6. John Claremont from Terrace, BC, Canada writes: Great day for any Canadian who owns mutual funds or shares directly.
  7. R L from Canada writes: Yet another Canadian company gets bought out by a foreign corporation. For major recent examples, see the Hudson's Bay Company (Canada's oldest corporation), ATI Technologies, Tim Hortons (bought by Wendy's), and now Falconbridge. Yet, Canada's government has not enough vision to do anything about it, preferring to sit idly by and allow capitalism to prevail. While other countries use policies to protect their domestic assets (and by that I mean to discourage foreign takeovers, not to subsidize domestic companies), Canada has no problem with a foreign firm buying up Canadian oil companies/assets. In the short-term this may be good for shareholders (which is why the bids are approved), but in the long-term, the annual profits are transferred out of Canada into the parent company located in another country. Is this good for Canada? Straight answer: No.
  8. Sheila Copeland from Canada writes: These deals are terrible for Canada. Losing Inco and Falconbridge to foreigners will cause Ontario to continue to lose good paying head office jobs. The spin-off from these lost head-office jobs will also be significant. Oh, the Ontario tax base keeps getting smaller. What does Dalton McGunity say to all this? Raise provincial taxes now or after the next election?
  9. A W from Toronto, Canada writes: #1, why is it bad for the average canadian? In fact, it makes little difference. Inco would have been bought by a foreign anyways. Further to that, a hostile bid from Teck Cominco can keep the company canadian.
  10. John smith from Canada writes: Actually I think that this good news for Sudbury. Phelps/Inco and Falconbridge pointed to the $900 million in cost savings with the merger. Those savings were going to come primarily from a rationalization of both Inco's and Falconbridge's operations in Sudbury which would inevitably lead to job losses. That may still come to pass however because Phelps has floated the idea of working with Xstrata to reduce operating costs in Sudbury.
  11. mitchell roy from Calgary, Canada writes: This is a free market at work. You can not control and economy any longer, and companies are now global. If Canada goes down the path like some suggest on here, of protecting Canadian companies, then Canada, and Canadian companies will remain a second rate economic power. And with attitudes like this from the populice, it is even more incendtive to move my companies out of this country.
  12. TERRI ROBSON from kimberley, Canada writes: I notice all here are saying it is a good deal,that in globalization Canadas bussines leaders should be buying more companies abroad and merging with each other to do it. WELL it is hard for Canadian Companies to do this when the E.U. and the U.S securities stick their noses in and say you have too big a company, so we are not going to let two Canadian Companies merge.Globalization is a misnomer it is bottom line 'big corporations' wanting to be in controll of ALL THE WORLDS ASSETS.Governments are being rendered irrelevant because of globalization.
  13. holly cow from vancouver, Canada writes: man, I though the days of belieiving in the 'magic hand' of unfettered market capitalism were behind us... apparently not so for the likes of commentors 3,4,5. Whenever dollars leave this country in the process of extracting resources which belong to EVERY Canadian, it is a bad deal for Canada. I am NOT referring to dividends paid out to share holders, but the unbelievably disgusting CEO, CFO,( et al ) pay packages that will be going to non-Canadians. Never mind the loss of another opportunity develop Canadian managerial and executive talent.... you think this a small issue? Check out how many top line jobs go to Canadians in the film industry....
  14. Andrew Tam from Woodbridge, Canada writes: Either we believe in the free economy and we live by the rules, and fight for it or let's just join the US. Because we Canadians pride ourselves for not being Americans but yet, I hear so much protectionism talk here. Maybe we should be hyprocrites whom many of you call our neighbours. Of course, I am just waiting someone to say that a Liberal or NDP government will not let this happen! Also, we won't let our banks merge either so they can do large M&A deals like this one. But then.....life is tough, then you die!
  15. Elden Van Klei from Canada writes: Why would Inco want to merge with Phelps. That would have a negative impact considering the hedging that Phelps has done and the money that they are losing. I would rather see Teck Cominco bid win in the end, although I am not sure if they have the capital if some of the other giants really wants Inco.
  16. N P from small town eastern Ontario, Canada writes: Geezus, you people, if you want to stop this sale, just sign on to your TDWaterhouse account and bid the price up over the $62.50 offer. Nobody is forcing the present shareholders to sell to Xstrata. It's called 'putting your money where your mouth is'.

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