Canada Needs To Change its Foreign-Takeover Rules: Coxe Advisors Chairman
Canada needs to change its foreign-takeover rules to allow provinces to reject transactions involving natural resources, such as BHP Billiton Ltd.'s $40 billion bid last year for Potash Corp. of Saskatchewan Inc. (POT.TO), Coxe Advisors Chairman Don Coxe reportedly said.
The country's constitution gives provinces jurisdiction over natural resources, something the current rules don't take into account, Coxe, a lawyer and adviser to BMO Capital Markets, said in a May 26 interview with Bloomberg.
Bloomberg noted Prime Minister Stephen Harper said last year his government will give investors more clarity on foreign-ownership rules after it blocked BHP's hostile takeover bid. Harper's Conservatives won a majority of seats in May 2 elections, making it easier for them to rewrite regulations, it said.
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