Insight - How the Petronas deal fell victim to Canada's China fears
(Reuters) - Malaysian state-owned oil company Petronas was so confident last Friday that its purchase of Progress Energy Resources Corp would be approved by Canada that company officials had drafted a press release to announce the news.
At midnight Kuala Lumpur time, they were flabbergasted to learn that Ottawa wanted more time to make a decision.
Canada's 11th-hour veto of the $5.2 billion (3.2 billion pounds) deal was the result of miscalculations and miscommunications, Reuters has learned through interviews with a dozen people briefed on the October 19 events.
The ruling stunned investors, driving down Canadian energy stocks and pressuring the Canadian dollar. It also cast doubt on Prime Minister Stephen Harper's repeated assertions that the country has an open door to foreign investment.
http://uk.reuters.com/article/2012/10/26/uk-investment-petronas-cnooc-idUKBRE89P06320121026
