GOVERNMENT HALTS ATK/MDA ACQUISITION

The Canadian government has blocked the 1.3B/USD acquisition of MacDonald, Dettwiler and Associates Ltd. (MDA) by U.S. defense contractor Alliant Techsystems Inc.(ATK). This was an unprecedented move by the folk in Ottawa with the reason for the sale stoppage given as not being in the best interests of Canada or the nation’s sovereignty. However, blanket news items stating the sale is over could well be incorrect… the sale IN ITS CURRENT FORM is the key to this information. The Canadian Federal Industry Minister, Jim Prentice, currently indicates the deal will continue to be rejected and under Canada’s investment and review law, new arguments may be presented to him within the next 30 days. He will then decide whether or not the acquisition is in Canadian interest or is a no go. At the crux of the problem is Radarsat-2, MDA’s remote-sensing satellite on-orbit for views of the Arctic, which some believe could be used by the U.S. to attempt an acquisition of Arctic areas Canada believes they own—the United States does not recognize such claims. Many of MDA’s shareholders are far from pleased with the government blockade of the deal. A long term result could be a MDA meltdown, as more than 80 percent of the company’s deals are U.S. space contracts.