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Ottawa considers ways to help manufacturers

TORONTO - The federal government is considering help for Canada's ailing auto industry.

Finance Minister Jim Flaherty says in an interview with the Globe and Mail that Ottawa is willing to go to the aid of teetering auto companies, but will consider help only for plants that are thought to be "sustainable."

Flaherty recognizes that the U.S. administration is poised to put together a rescue package for the major U.S. auto companies.

Flaherty said the lower Canadian dollar has given domestic plants back some of their competitive edge, compared with U.S. plants. But he added that he and Industry Minister Tony Clement are contemplating help all the same.

AIG Group package grows to $150 billion

WASHINGTON - In a record bailout of a private company, the government on Monday provided a new US$150-billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.

The action, announced by the Federal Reserve and the Treasury Department, was taken as it became increasingly clear that an original financial lifeline thrown to AIG in September would be insufficient to stabilize the teetering company.

All told, the moves boost aid to the company to more than $150 billion. Fed officials, however, expressed confidence that the money would be repaid to taxpayers.

Pink slips handed to 300 workers at Ford plant

WINDSOR, Ont. - Layoff notices have gone out to 300 workers at the Nemak Essex Aluminum Plant in Windsor, Ont.

The cuts take effect Feb. 9, 2009, and will affect employees with less than 14 years of seniority.

Nemak Aluminum is a joint venture between Ford of Canada and Nemak, which in turn is owned by Alfa of Mexico.

Mark Renaud of Local 200 of the Canadian Auto Workers union says the layoffs were expected because of the plant's looming closure.

If market conditions remain unchanged, Renaud says the plant is scheduled close at the end of March.

The Nemak plant supplies cylinder heads to Ford's engine plant in Windsor. (CKLW)

Restive BCE investors fail to get injunction to stop $52B takeover

MONTREAL - BCE Inc. said Monday that Saskatchewan Court of Queen's Bench has refused to grant an injunction to halt its privatization transaction.

The court order had been sought by shareholders unhappy that $600 million of dividends were cancelled to smooth the way for the takeover.

Meanwhile, BCE and its main subsidiary, Bell Canada, have launched cash tender offers for about $1.95 billion of debt - a step toward the anticipated takeover and privatization.

The $52-billion acquisition deal, the largest corporate takeover in Canadian history, has taken longer to complete than initially expected and there have been continuing concerns that it will be derailed before its scheduled closing on Dec. 11.

Sources: The Canadian Press, The Associated Press