Viterra shares hit 7-month low as Canada rejects takeovers

Mon Oct 22, 2012 2:47pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Glencore takeover of Viterra awaits China approval

* Canada weighing Chinese bid for oil producer Nexen

* Canada rejected 2 takeover bids last week

By Rod Nickel

Oct 22 (Reuters) - Shares of grain handler Viterra Inc dropped to a seven-month low on Monday, caught in the downdraft of a selloff related to two rejected takeovers of Canadian companies, observers said.

The Toronto Stock Exchange's S&P/TSX composite index dropped 0.5 percent in early afternoon trading Monday, as Canada's rejection of a foreign bid for Progress Energy Resources Corp rippled through energy stocks and tempered gains in mining stocks.

Viterra shares dropped by as much as 2.2 percent.

That continued a steep two-day selloff that started Friday after Canada's broadcast regulator vetoed a C$3-billion takeover by BCE Inc of Astral Media.

Viterra's lowest-traded price of C$15.65 was the lowest since before Glencore International PLC bid C$6.1 billion ($6.2 billion) for Viterra in March.   Continued...