Would Ottawa Allow a RIM Takeover?

[Sam_Reynolds]

The collapse of RIM’s stock price during the last year has made it the subject of takeover talks from a variety of market players — though some such as Samsung deny the charges — during the past few months. While rumours hold that the company’s CEOs are aggressivley pursuing potential suitors, and rejecting some, for a takeover deal there is another angle that needs to be considered: would Ottawa allow such a deal to go through?
Read more here: Would Ottawa Allow a RIM Takeover? | Hardware Canucks

[chrisk]

Yes they will. Majority govt now, whereas before it was a minority situation and votes were at stake.

[Birk]

We're talking politicians here, If there is enough money in it for them, they'll allow almost anything.

[Arinoth]

I think they will because unlike most the other blocks, this is for technology rather then natural resources.

[jtktam]

What I don't understand when it comes to these debates, isn't these companies private entities? is not like they are a crown corp or anything..

let's say I build up a butcher shop to be a multinational corp.. and i want to sell it to retire.. what gives the government the right to supercede my right to sell what I own?

so in the same token.. why would the government feel they have a right to block the sell of RIM (or previously Nortel) ..

if they want to "keep it canadian" they can go and buy the company... (they = government)

-joe

[SKYMTL]

They are private entities but in this case the entity has a massive amount of highly sensitive information. Everything from government emails to military communiqués runs through their servers so the government can and should step in if the purchaser doesn't meet a certain set of criteria.

[Birk]

Originally Posted by SKYMTL

They are private entities but in this case the entity has a massive amount of highly sensitive information. Everything from government emails to military communiqués runs through their servers so the government can and should step in if the purchaser doesn't meet a certain set of criteria.

easy fix! delete all the governments shit off your servers. "WOOPS! my bad deleted all ur crap, guess you got nothing to worry about if I sell my own company that you have no rights to"

[Herne]

Originally Posted by jtktam

let's say I build up a butcher shop to be a multinational corp.. and i want to sell it to retire.. what gives the government the right to supercede my right to sell what I own?
.......

-joe

'What is the Investment Canada Act, Alex?'

/I'll take Canadian economic legislation for $400 please

[jtktam]

and they wonder why no companies want to be HQ in Canada .. discourage people to get too big so they can't sell :)

-joe

[Herne]

Originally Posted by jtktam

and they wonder why no companies want to be HQ in Canada .. discourage people to get too big so they can't sell :)

-joe

Actually I think that has far more to do with historically higher corporate tax rates- which is about fixed. Much higher R&D credits, which is why you see so many of those branches here.

And foreign companies buying into the Canadian market aren't moving HQs in, they tend to move jobs out. You can argue that that is their right, but its less clear if those companies grew with lucrative incentives. Similarly, restricting foreign ownership of resources is hardly unique to here. How many of the countries investing the in oil sands allow anything similar in their own countries?