GO
Loading...

UPDATE 1-Canada PM won't unveil foreign takeover rules on trip-aide

* PM promised new investment guidelines in near future

* PM will be on Asian trip Nov 3-11

* Sources say review of CNOOC bid for Nexen set to be extended

OTTAWA, Nov 1 (Reuters) - Canadian Prime Minister Stephen Harper is not expected to unveil a new framework for reviewing foreign takeovers of Canadian companies during a Nov 3-11 trip to Asia, a top aide said on Thursday.

The Conservative government has promised to present new guidelines at around the same time it announces its decision on whether to approve a $15.1 billion bid by China's state-owned CNOOC Ltd to take over oil producer Nexen Inc . Harper has said announcements will be made ``in the near future''.

Asked whether the guidelines would be unveiled during the trip to India, the Philippines and Hong Kong, Harper's chief spokesman, Andrew MacDougall, told a briefing: ``I don't expect we'll be covering much on the foreign investment front.''

The CNOOC bid has become increasingly controversial in Canada amid heated debate over whether foreign state-owned enterprises should be allowed to buy Canadian companies.

Sources close to the matter told Reuters on Wednesday that the government needed more time to formulate its investment guidelines, and that the deadline for its CNOOC decision was likely to be extended beyond Nov. 10.

Canada may also need the guidelines in the case of a $5.17 billion ($5.17 billion) offer by Malaysian state oil company Petronas to buy natural gas explorer Progress Energy Resources Corp.

Ottawa rejected the bid on Oct 19 on the grounds that it was not of net benefit to Canada. Petronas has another 30 days to change the terms of its proposal and submit a new offer.

Symbol
Price
 
Change
%Change
NXY'U
---