0624 D1 Business by dfsdf224s

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									                                    PERSONAL FINANCE: Early retirement within waitress’s grasp — Page D2




                                                                            Business
Editor: Darren MacDonald 674-5271, ext. 242, fax: 674-6834, e-mail: editorial@thesudburystar.com

 THE SUDBURY STAR                                                                                            SATURDAY, JUNE 24, 2006                                                                                        SECTION D


       MONEY WATCH
  Yesterday’s closing numbers
       TSXV                S&P/TSX


       2,589.93              11,249.02
        +34.08                + 118.81
                                                                                                                                                                                                                HAROLD CARMICHAEL
    NASDAQ                    DOW
                                                                                                                                                                                                                 Business Beat

       2,121.47
         -1.51

       NICKEL
                             10,989.09
                               -30.02

                           CRUDE OIL
                                                                                                                                                                                                           Sudbury
                                                                                                                                                                                                           has a ‘little
                                                                                                                                                                                                           secret’
        9.41                      70.54
        +0.63                     +0.05

       CAN. $                 GOLD



                                                                                                                                                                                                           I
                                                                                                                                                                                                               f you have several expen-
         89                   584.80                                                                                                                                                                           sive pieces of women’s
        -0.37                  +2.60                                                                                                                                                                           clothing that you no
                                                                                                                                                                                                           longer wear but would like
                Local stocks                                                                                                                                                                               to recoup a little of the pur-
Name               Last     Net      High     Low
                                                                                                                                                                                                           chase prices, Connie Horsfall
CNR               $47.60   +0.05     47.95   47.48                                                                                                                                                         has a business proposition
CPR               $54.90    -0.21    55.45   54.50
Domtar             $6.35    -0.14     6.50    6.30
                                                                                                                                                                                                           for you.
Falconbridge      $55.50    -0.10    55.70   55.10                                                                                                                                                            Our Little Secret, located
Inco              $65.25   -0.99     66.60   64.84                                                                                                                                              CP PHOTO   in the rear of a building at
Loblaw            $52.77   +0.06     53.14   52.30   Scott Hand (left), chairman and chief executive officer of Inco, and Derek Pannell, chief executive officer of Falconbridge,                          214 Shaughnessy St. across
Nortel             $2.41   +0.09      2.48    2.29                                                                                                                                                         from Alexandria’s, is a new
Petro-Canada      $49.38   +0.82     50.31   48.01
                                                     shake hands in Toronto in October after the official announcement of Inco’s friendly takeover of Falconbridge.




                                                     Merger mania
Tembec Inc.        $1.41   +0.02      1.42    1.35                                                                                                                                                         consignment store specializ-
                                                                                                                                                                                                           ing in women’s clothing and
                                                                                                                                                                                                           accessories. Clothing that is
                                                                                                                                                                                                           clean and in good condition
                                                                                                                                                                                                           is accepted.
                                                                                                                                                                                                              Horsfall said there is a need
               Friday, June 16                                                                                                                                                                             for such a store because Sud-
                                                                                                                                                                                                           bury has many people who
                                    11249.02                                                                                                                                                               enjoy getting a great deal.
                                      +41.07                                                                                                                                                                  “I have been open three to
                                     2589.93                                                                                                                                                               four weeks now and the
                                      +10.00                                                                                                                                                               average item will last two to
                                          89.00
                                          -0.09
                                                        BY HAROLD CARMICHAEL
                                                              The Sudbury Star                        The battle for                                                      He said he has learned the
                                                                                                                                                                       synergy summit involved 30
                                                                                                                                                                                                           three weeks,” said Horsfall,
                                                                                                                                                                                                           who also works at a local law
                                                                                                                                                                       representatives of big fund-        firm. “But with specialty
                                    10989.09
                                      -25.46
                                                        In the next few weeks, the
                                                     complex scenario facing Inco
                                                                                                 Inco and Falconbridge                                                 managing companies. He said
                                                                                                                                                                       the various funds, which
                                                                                                                                                                                                           items, if they see something
                                                                                                                                                                                                           they really want, I have had
                                     1244.50
                                       -7.04
                                                     Ltd.’s proposed friendly
                                                     takeover of Falconbridge Ltd.
                                                     could finally be resolved.
                                                                                               plays out on a global stage                                             could have two, three or even
                                                                                                                                                                       four million shares of Falcon-
                                                                                                                                                                       bridge each and may account
                                                                                                                                                                                                           things last only a day.”
                                                                                                                                                                                                              Horsfall said the idea for
                                                                                                                                                                                                           Our Little Secret came about
                                     2121.47
                                       -8.48            But don’t bet on it. A more                                                                                    for about 25 per cent of the        after a few friends got
                                                     likely scenario will see the pic-                                           would be the world’s largest          company’s total stock, will         together, lost some weight
                                      584.80         ture get even cloudier, says                                                nickel company with an                have a huge say in determin-        and had to shop for new
                                       +6.80         Terry Ortslan, a nickel analyst        “It’s going to get more              about 30 per cent market              ing which bid for Falcon-           clothes. But the once-worn
                                             CP      with TSO & Associates in               crowded. I wouldn’t                  share. It would also be the           bridge is accepted.                 clothes in the women’s clos-
                                                     Montreal. More players are                                                  fifth-largest copper producer.           “If you want cash, Xstrata       ets still had a lot of life in
                                                                                            want the ink drying too
Ontario
                                                     likely to submit bids either for                                               “We must as Canadians              has the best deal,” he said. “If    them. After doing some
                                                     Falconbridge or Inco, which is         fast on the paper.””                 understand the Inco/Falcon-           you want stability, Sudbury is      research and checking out
                                                     already trying to fend off a                                                bridge deal is the best for           a good place to be now ... Blue     consignment stores in other

businesses
                                                     hostile takeover bid from Van-                                              Canada,” said Ortslan. “It’s          chip funds always look for sta-     cities, Horsfall decided to
                                                     couver-based mining giant                   Terry Ortslan, nickel analyst   the best merger, the mineral          bility. Mining is very stable       launch her own business.
                                                     Teck Cominco Limited.                                                       situation, the technology, all        right now. If they cash in,            “I am trying to cater to the

to get
                                                        “If the Teck bid is the only                                             the good things.”                     what will they buy with it?”        women who work in the
                                                     bid on the table, I’m sure you         bridge (stock) who don’t care           But Inco’s bid for Falcon-            If Xstrata does make             office in the daytime who
                                                     are going to see other people          about the deal,” he said.            bridge could be just one com-         another move for Falcon-            might not have been able to

$18 million
                                                     coming in,” he said in a tele-         “They just want to get the           peting bid away from becom-           bridge, it will have to deal        wear the brand names
                                                     phone interview.                       best share price.”                   ing undone, said Ortslan.             with a poison pill strategy         because they might not have
                                                        “The merger company mar-              However, if accepted, the             “It’s going to get tougher if a    adopted by Falconbridge. It         been able to afford them,”

from gov’t
                                                     ket is pretty crowded. I don’t         offer would create a signifi-        higher bid comes in,” he said.        adopted the pill in late March      she said.
                                                     think it is going to proceed as        cant amount of debt for                 Inco and Falconbridge last         to prevent a creeping                  Our Little Secret is holding
                                                     nicely as people think. It’s           Xstrata, always an important         week held a so-called “synergy        takeover by an unwanted             its grand opening next week.
                                                     going to get more crowded. I           factor in business.                  summit” in Sudbury to tout the        rival. Falconbridge’s new           The business is open 11
   LONDON, Ont. (CP) —                               wouldn’t want the ink drying             “I don’t know how they             $550-million U.S. in annual           shareholder rights plan would       a.m.-2 p.m. and 4:30-6 p.m.
Three Ontario businesses                             too fast on the paper.”                can manage such a big invest-        savings the two Toronto-based         not prevent an offer made to        weekdays, and 11 a.m.-3
are getting $18 million in                              Ortslan said the competing          ment,” he said.                      companies say they would real-        all shareholders for all of the     p.m. Saturdays (except for
loans aimed at boosting                              bid by Swiss-based miner                 In contrast, the Inco deal is      ize by combining operations in        shares — such as Inco’s — but       long weekends)
manufacturing, Ontario Pre-                          Xstrata PLC for Falconbridge           a cash-and-share proposition         the community.                        would prevent a prospective
mier Dalton McGuinty said
Friday.
                                                     dangles a bigger cash carrot in
                                                     front of Falconbridge share-
                                                                                            that would see Falconbridge
                                                                                            become a key ingredient of a
                                                                                                                                    Rick Grylls is president of
                                                                                                                                 Mine Mill Local 598/CAW,
                                                                                                                                                                       acquirer from slowly increas-
                                                                                                                                                                       ing its stake in Falconbridge.      Realtor receives
   The loans will help manu-
facturers develop cutting-
                                                     holders — a very powerful
                                                     motivator in the stock market.
                                                                                            bigger Inco that would domi-
                                                                                            nate the nickel industry. The
                                                                                                                                 which represents about 1,050
                                                                                                                                 production and maintenance
                                                                                                                                                                       The market would ultimately
                                                                                                                                                                       be flooded with new shares,         high honour
edge technologies that will                             “There are a lot of share-          New Inco, as Inco officials are      workers at Falconbridge’s Sud-        making a hostile takeover              In just five years, a young
attract investment and cre-                          holders who have Falcon-               dubbing the proposed entity,         bury operations.                      increasingly expensive.             Greater Sudbury Realtor has
ate about 600 jobs, said                                                                                                                                                                                   achieved an honour that
McGuinty, with London,                                                                                                                                                                                     normally takes 10 or 15.
Ont.-based Diamond Air-
craft Industries as a back-
drop for the announce-
                                                                                 CHRONOLOGY OF EVENTS                                                                                                         In March, Steven Kuula,
                                                                                                                                                                                                           33, was inducted into the
                                                                                                                                                                                                           Re/Max Hall of Fame, a sales
ment.                                                                                                                                                                                                      milestone most Re/Max
   “We want to help                                                                                                                                                                                        Realtors can achieve during
Ontario’s manufacturing sec-                                                                                                                                                                               their careers.
tor be the first to discover                                                                                                                                                                                  Kuula, who works out of
new ideas and turn those                                                                                                                                                                                   the Re/Max Crown Realty
ideas into products that they                                                                                                                                                                              office in the New Sudbury
can market to the world,”                                                                                                                                                                                  Centre, got his start with
said the premier.                                                                                                                                                                                          Re/Max in November 2000,
   “By supporting innovative                                                                                                                                                                               fresh out of the real estate
manufacturing technolo-                                                                                                                                                                                    course.
gies, we’re bringing the best                                                                                                                                                                                 In his second year in the
jobs with the highest pay to                                                                                                                                                                               business, Kuula got the idea
Ontario.”                                                                                                                                                                                                  to try something different to
   Diamond Aircraft will get                                                                                                                                                                               selling real estate. He hired a
$10 million for the develop-                                                                                                                                                                               support staff that included a
ment of a single-engine,                                                                                                                                                                                   service, marketing and sales
five-seat jet aircraft. Messier-                                                                                                                                                                           departments. The six-mem-
Dowty Inc., which designs                                                                                                                                                                                  ber team handles everything
landing gear systems in                                    ➤ In October 2005, Inco           conbridge puts together a           ment) earn a hefty financial         line of July 24, is contingent       from innovative marketing
Ajax, Ont., will get a $5 mil-                          announces a $12.5-billion            poison pill or shareholders         bonus for the difference in          on Inco dropping its Falcon-         programs to customer serv-
lion loan.                                              takeover of Falconbridge or          rights package to thwart any        the value of the shares it           bridge friendly take-over bid.       ice, allowing Kuula to con-
   And Brockville, Ont.-                                0.6713 of an Inco common             possible unfriendly take-over       sold.                                   ➤ Inco, suggests docu-            centrate on selling houses.
based Procter and Gamble                                share plus five cents in cash for    offer.                                 ➤ Inco, meanwhile, ups its        ments filed with the U.S.               “I emulated building my
will get a $3-million loan to                           each Falconbridge share to a            ➤ Swiss-based mining             offer $1.9 billion or $5 a           Security Exchange Commis-            office on a lawyer’s or doc-
develop a new generation of                             maximum of 201 million Inco          giant Xstrata PLC, which is a       share. The offer is now worth        sion shortly after the Teck          tor’s office where the person
quick-cleaning homecare                                 shares issued. Falconbridge          19.9 per cent owner of Fal-         $19 billion due to the               Cominco offer is announced,          doesn’t do everything him-
products.                                               endorses the friendly takeover.      conbridge, after picking up         increased value of Falcon-           may be looking for a “white          self,” he said. “So, I hired key
   The loans are the first                                 ➤ The friendly takeover           shares from Brascan last            bridge shares. The multimil-         knight” to counter the hostile       people to work in several
three projects to be funded                             has to be approved by regu-          August, issues a counter            lion dollar penalty Falcon-          takeover bid.                        areas”
through the government’s                                latory bodies in Europe and          offer for Falconbridge in mid-      bridge would pay Inco if the            ➤ Inco extended its Fal-             In 2000, Kuula sold 19
much-touted Advanced                                    North America.                       May. The offer is worth a           friendly take-over falls             conbridge takeover deadline          homes. The year he intro-
Manufacturing Investment                                   ➤ A deadline of Dec. 23 is        total of $16.1 billion or           through is also boosted to           several times over the past          duced his real estate team
Strategy.                                               also set for the deal to be          $52.50 Cdn cash per Falcon-         $450 million.                        six months due to regulatory         (2002), he sold about 75. In
   The $500-million strategy                            finalized.                           bridge share. The offer came           ➤ Vancouver-based min-            approval delays. The new             2005, Kuula sold a whop-
provides repayable loans                                   ➤ As well, Falconbridge           after May 15, a key date stip-      ing giant Teck Cominco Lim-          deadline is July 12.                 ping 155 homes — almost
that are interest-free for up                           will pay Inco a $320 million         ulated in the Brascan sale of       ited, meanwhile, announces              ➤ On Friday, U.S. regulators      eight times the industry
to five years.                                          penalty or break fee if the          the Falconbridge shares. The        a hostile take-over offer for        finally give the green light to      average of 20 a year.
   The loans are expected to                            friendly takeover falls              sale’s top-up clause would          Inco in early June worth             Inco’s bid for Falconbridge, a
help generate $187 million                              through.                             have seen Brascan (now              $17.8 billion The stock and          key development that bodes           ■ If you have business news, call
in new private investment                                  ➤ In late March 2006, Fal-        Brookfield Asset Manage-            cash offer, which has a dead-        well for Inco’s chances.             Harold Carmichael at 674-5271,
in the province, according                                                                                                                                                                                 ext. 239, fax 674-6834 or e-mail
to government estimates.                                                                                                                                                                                   hcarmichael@thesudburystar.com.

   CMYK

								
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