UPDATE 2-On CNOOC-Nexen deal, Canada minister points to investment pact

Fri Nov 30, 2012 2:44pm EST
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* Kenney says investment pact speaks to reciprocity

* Share price up strongly after depressed week

* Notes rigorous analysis planned for state firms

* Says Canadian values neglected in dealing with China

By Randall Palmer

OTTAWA, Nov 30 (Reuters) - A Canadian cabinet figure known to have reservations about CNOOC Ltd's bid to buy Nexen Inc said Friday that at least some of Canada's concerns about getting reciprocal treatment from China had been addressed by an investment pact.

In his remarks, Immigration Minister Jason Kenney also underscored Prime Minister Stephen Harper's concerns about takeover bids by foreign state-owned enterprises. He said Harper had stressed the importance of preserving Canadian values, such as human rights, in dealing with China.

The remarks highlighted the depth of a government debate over whether to approve state-owned CNOOC's plan to buy the energy producer.

Shares of Nexen, which had advanced before Kenney spoke, erased some gains afterwards, only to surge again by midday, presumably as the market looked more towards the positive nuances in his remarks, rather than the negative.   Continued...