Ottawa to sell Petro-Canada stake - Breaking News CBC

[Screaming Lord Byron]

http://www.cbc.ca/stories/2004/03/23/business/petcan040323

OTTAWA - The federal government will sell its stake in Petro-Canada, Finance Minister Ralph Goodale said Tuesday, in a transaction that could earn Ottawa almost $3 billion. Goodale confirmed media speculation about the impending sale just hours before he was due to deliver the budget speech.


In a three-paragraph statement, Goodale said the governent would sell its stake, but "the precise timing of the sale is yet to be determined."

Rumours have been mounting since a media report on the weekend said Ottawa was considering selling its stake in Petro-Canada (TSX-PCA). Since then, there have been more stories citing unnamed sources.

[Minstrel Boy]

1. This pisses me off.

A petroleum giant like Canada ought to have a public energy sector. It was timely in the early 1970s, when Petro-Canada was born during the Lib-NDP coalition, but it's needed now more than ever.

[Screaming Lord Byron]

2. The damage was done years ago when Govt. ownership dropped below 50%

They owned 19% of the shares. I don't know the structure of the shareholders at Petro Canada, but 19% is not a huge amount. The guilty party is the government who deliberately made themselves a minority shareholder in what should be a nationalized asset. I assume that was Mulroney's doing. Now, if the Liberals take a sizeable chunk of this money and put it into wind and wave power, I'll be a bit happier.

[Minstrel Boy]

3. Agree, the damage was done by Mulroney.

As I said elsewhere, I wasn't even aware the government had any stake left in Petro-Canada. At only 19%, there's not much to be done but profit take. There's no "window" into the petroleum industry and no public leadership, which was pretty much the idea.

[Screaming Lord Byron]

4. It's a sad end to Canada's attempt to control some of it's own resources.

Eventually, people will learn that they need to have some control over their own natural resources. Otherwise the free market will take it, and the profits away from you.

[Spazito]

5. Totally agree with you!

I am so tired of other countries coming in and buying up the rights to our resources, that needs to stop, imo. I have no problem with outside interests owning MINORITY shares but Canadians must own the controling share when it comes to our natural resources.

[Screaming Lord Byron]

6. That's one reason the Scandinavians have a high standard of living.

Canada does not have strong enough restrictions on foreign ownership of crucial industries. That should be obvious to anyone. If a foreign entity is a majority shareholder in a Canadian corporation, what will be their first loyalty - to themselves and their home country, or to the workforce and Canada. What is to stop them strip-mining the company and shipping the assets abroad?

[daleo]

7. As a major shareholder, wouldn't they still have a window

I grant it is far from a controlling interest, but wouldn't they still be a fairly major player on the Board of Directors, and that sort of thing? Perhaps regulatory agencies would give sufficient insight into reserves, costs of production, etc., but one would think that being a substantial shareholder in Petro-Canada would be invaluable for gaining the insider knowledge helpful in shaping public energy policy. With the talk of peak oil, this seems like an exceptionally stupid time to sell this interest.

[Screaming Lord Byron]

8. I'm no expert on corporate governance, I'm afraid.

It would be a good sign of intention if they were to invest the money in renewable energy.

[Spazito]

9. There used to be a solid policy about foreign ownership....

but I think it was during the disasterous Mulroney years that the % that could be bought by foreign companies was raised. Like everything else done by Mulroney, it was a disasterous policy change.