Money world

Canadian investors were contemplating the federal government’s squelching of a major corporate takeover Thursday, while U.S. stock index futures were slack, overseas equity markets were generally lower and oil hit new highs.

Industry Minister Jim Prentice confirmed early Thursday he has told Alliant Techsystems Inc. he is not satisfied that the proposed sale of MacDonald, Dettwiler and Associates Ltd. (TSX: MDA) is likely to be of net benefit to Canada.

The most valued asset in the proposed $1.325-billion transaction is the taxpayer-subsidized Radarsat 2 satellite, and the deal has hit a storm of controversy over national security and sovereignty anxieties.

The Canadian dollar opened at 98.30 cents US, up 0.16 cent, as the American dollar fell to new lows against the euro. The 15-nation euro rose as high as $1.5912 (U.S.), topping its previous March 17 record of $1.5904.

Crude oil was up 56 cents at US$111.43 a barrel after settling up $2.37 at a record $110.87 Wednesday on word of falling American oil inventories.

London’s FTSE 100 index was down 0.75 per cent after the Bank of England trimmed its policy interest rate by a quarter-point to five per cent. The German DAX was down 1.3 per cent and the Paris CAC-40 lost 1.4 per cent.

Tokyo’s Nikkei index closed with a decline of 1.3 per cent, while the Hong Kong Hang Seng edged up 0.8 per cent.

In Canadian corporate news, Agrium Inc free credit report online. (TSX: AGU) is buying a 70 per cent interest in Common Market Fertilizers S.A., a European fertilizer distribution company with annual sales of more than US$500 million. Agrium said the price is $16 million plus working capital of $50 million.

Forzani Group Ltd. (TSX: FGL) reported a 13 per cent rise in holiday-quarter same-store sales, capping a year in which profit grew 35 per cent. Canada’s largest specialty sporting-goods retailer said it earned $47.5 million in the year ended Feb. 3, up from $35.2 million in the previous year, as revenue increased to $1.33 billion from $1.26 billion.

Corus Entertainment Inc. (TSX: CJR.B) reported a two per cent increase in quarterly revenue to $178.7 million, as TV and radio revenue rose four per cent but the Corus Content segment suffered a 24 per cent drop. Consolidated net income was $35.4 million in the second quarter ended Feb. 29, up from $19.5 million a year earlier. The latest quarter benefited from $13.2 million in recoveries related to income tax changes.

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