Surging Tories Moving Markets (Canadian Election)

London Free Press ^ | Fri, January 13, 2006

[UpHereEh]

TORONTO -- Conservative Leader Stephen Harper is moving the markets as Canadian investors bet on what he'll do if he beats the Liberals in the Jan. 23 election.

With polls suggesting his party is headed toward a possible majority government, investors are rolling the dice once more on the on-again-off-again prospect that the country's Big Six banks finally will be allowed to pursue mergers.

Shares of Bank of Montreal -- the most obvious takeover target if Ottawa endorses consolidation -- jumped 77 cents yesterday to close at $68.60 on the Toronto Stock Exchange, a day after reaching a 52-week high.

Canadian Imperial Bank of Commerce, which also figures to be prey for a larger rival, closed down 91 cents at $79.60 yesterday, almost negating Wednesday's 1.6-per-cent gain.

None of these bets has paid off for investors during the last decade. But interest in the merger file always has enjoyed something of a Lazarus quality and this latest resurrection has occurred squarely in lockstep with the sudden revival of Harper's Conservatives.

Many believe the Tories' ideological bent will make them more disposed to approve financial services consolidation after years of fruitless debate.

Others, such as National Bank Financial Inc. analyst Robert Wessel, believe the recent paralysis on mergers had less to do with the ruling Liberals' political will than it did with the fact they were operating with a minority government.

The Conservatives offered qualified support for bank mergers over the summer, proposing that the crucial "public interest" test on the issue be carried out by an independent body to depoliticize the process.

However, they have remained non-committal on what promises to be a highly contentious topic with Canadians.

"We said, you know, there should be some public interest test met, if mergers would go forward," Conservative finance critic Monte Solberg said. "You know, we've been at this for I think eight years now and, as the prime minister said himself, the next government must deal with this issue. So we support a process.

[backhoe]

I continue to update ( go to "comments," go to "last," and work backwards ) this post of links, blogs, and quips:

-ADSCAM -- Canada's Corruption Scandal Breaks Wide Open--

The Canadian blogs are leading the way exposing the endless scandals and keeping attention on them. Be sure to check them out.
Read the "comments" sections- the replies are often witty & illuminating, and some have links or URL's to more information.

Not to mention the Yeoman's work done by our Canadian sister site, Free Dominion:

-Free Dominion--

[UpHereEh]

Wow, I think you should be hired as a Special Advisor to the Conservative Cabinet immediately!!!

Simply outstanding work backhoe!!!!

[backhoe]