Market Chatter: UPDATE: Nexen, Progress Jump On Report Takeover Policy Imminent
Nexen Inc's (NXY.TO) shares jumped nearly 3% on Thursday after a report suggested Ottawa might speed up its decision on whether to allow a $15.1 billion takeover of the Canadian oil producer by China's state-owned CNOOC Ltd, Reuters reported.
The Canadian government is reviewing the proposed takeover, along with a bid by Malaysian state oil company Petronas for Progress Energy Resources Corp (PRQ.TO) to see if they pass its test of being of net benefit to Canada. It has promised to issue a new policy framework on foreign investment at the same time as it announces its decisions on the deals.
Progress stock also jumped about 3% on Thursday in an overall down market.
Canada's consul general in New York, John Prato, was cited by the online news service dealReporter as suggesting the new foreign investment guidelines could come this week or next week.
The news organization, which is part of the Financial Times Group, said Prato later told its reporter the government has said it would issue the guidelines in November.
The news article contained no direct quotes and Prato's office was not immediately available to confirm his remarks. A spokesman for Canadian Prime Minister Stephen Harper said: "I won't speculate on timing."
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