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Xstrata takes control of Falconbridge

Canadian Press

Latest comment posted at 2:31 PM EDT 17/08/06

Swiss company acquires additional 67.8 per cent of shares; extends expiry date of offer ...Read the full article

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  1. Jennifer Winthrope from Vancouver, Canada writes: I love that our Canadian business leaders can't think of anything better to do than sell out to foreigners. Instead of building up Canadian businesses with foreign acquisitions, Canadian companies are increasingly becoming nothing more than pawns in foreign-controlled corporate empires. I suppose that the Canadian executives are well-compensated for cutting these deals - most of them have obscenely-lucrative golden parachutes that are triggered on an acquisition of control. It is too bad that they are so well compensated for giving up.
  2. Edward M from Ottawa, Canada writes: I've got to agree with the previous comment. Falconbridge has been a great Canadian company and frankly could have remained independant and grown substantially very much on its own, but sadly its executives have exhibited feet of clay. Instead of exercising some genuine imagination - and backbone - they sold out for immediate cash, no doubt claiming that it's in the investors' best interest. It's not a shining example of corporate vision and leadership.
  3. A W from Toronto, Canada writes: I don't understand why we keep on having this same debate over and over. Net-net, Canadians are buyers of foreign businesses, not vice versa. Get over it.
  4. A F from Anywhere, Canada writes: #1 and #2. You guys just don't get it. Public companies are up for sale every single day. The executives didn't sell out, the shareholders did, and for a very good price at the top of the commodities cycle. The executives didn't even want to do a deal with XStrata - remember, it was a hostile acquisition that offered far more to the shareholders than the friendly deal with Inco (and Phelps). At the end of the day, Canada will still get tax revenues (you can't move a mine out of country) and Canadians will still be employed to operate the mines in Canada. I agree with #3, get over it!!
  5. Barry Monette from Ottawa, Canada writes: Foreign ownership has its perils, and they are significant. Ownership is much more than using foreign capital (e.g. bonds and debentures). Foreign owners participate in and hold seats in industry sector associations, councils, and other pressure groups. It is difficult for such owners to escape the ideology, cultural, economic, and political interests of their home countries. Consequently their natural 'foreign' interests tend to 'flavour' the representations of the private sector to government and the public at large. Image what would happen to the softwood lumber lobby if a significant majority of Canadian softwood companies were US controlled. Then take a look at our oil industry and its development pattern. Regulation can offset this, but over the long run regulation flows from the interests of public sector reoresentatives and lobby. Canada has resources far in excess of its population, giving it a stronger voice than simply being 1/10 as significant as the USA. Canadians have a vital role to play in the world. We need to retain our ability to offer an independent and objective view.
  6. mitchell roy from Calgary, Canada writes: Companies are gobal, deal with it. There are benifits to this, all those who will move on from the company im mangement or exutive levels will go to other junior minig resources providing their leadership to them, or they will create a new junoir resource company. Both in the end will creat jobs and economic activity. The sharholder benifited, but so will those who move on to creat new jobs and economic activity, and in the end, the economy and those who are looking for employment. Secondly, the resources, still remain inder the control of the province, that does not change. Even when a company is sold or merged. If we remain short sighted, and try to be protect our enconomy, then Canada will remain a second rate economic power.
  7. Mel Garejo from Toronto, Canada writes: #4 I think you are the one that doesn’t get it: we are giving away a part of our sovereignty. There will be no gain for the average Canadian when 000's of jobs are lost. I don’t know how Industry Canada allowed this to happen. Anybody in favour of allowing a takeover of Industry Canada by a foreign government? I’m all for it… (Hope these bureaucrats loose their jobs!) #6, don't agree with your view, (and please fix your spell check)
  8. Ian McDonald from Toronto, Canada writes: Where was everyone complaining about foreign takeovers when Royal Bank bought a U.S. bank? Do you only beleive its bad when others buy Canadian companies but good when Canadian companies buy foreign ones? That sounds a little hypocritical.
  9. Terry H from Moncton, Canada writes: #3 and #4 , move to another country please. Your sure not a patriotic Canadian. Disgusting is the only word I can think of for this fiasco. Wait and see how many jobs go down the tubes because of yet another sellout by greedy shareholders and spineless CEO's.
  10. Anne Brown from Australia writes: I think we're generalizing a bit too much. Not all foreign companies are created equally. Does anyone remember when Xstrata tried to buy WMC in Australia? I can't remember the details, but I think it was blocked by their government, not because they were foreign but because of Xstrata's history of massive layoffs when times turned. Wouldn't 3 years from now see you when the resource sector is expected to cool? And that's when Xstrata would be free to lay-off the workforce.
  11. mitchell roy from Calgary, Canada writes: 1.) new companies will be created. 2.) talented mangement will help other start ups or junior resource companies. 3.) business are global, deal with it. 4.) Can not control economy, in this day and age. It is not the 70's anymore. Simple enought for you 7?

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