Business Watch

Businesses feeling upbeat

MANITOBA'S small and medium-sized businesses were feeling more upbeat at the start of the new year, a new survey shows.

The Canadian Federation of Independent Business said Wednesday its latest monthly business barometer survey showed a four-point jump in confidence levels among the province's small and medium-sized businesses.

It said Manitoba's confidence index jumped to 68.8 from 64.4 in December. That was the fourth-highest reading among the provinces and was 3.6 points higher than the national average of 65.2.

Confidence levels in Manitoba had been trending downward for much of 2011, falling to their second-lowest level in more than a year in December after a brief rally in November.

Canada saw just a slight improvement -- two-tenths of a point -- in its index. But the index still remained lower than at any point in the first half of 2011, the federation said, indicating the economy is growing at a slower pace than in the first half of last year.

Scotiabank offers shares

TORONTO -- Scotiabank said Wednesday it plans to raise $1.5 billion in an offering of common shares the bank said will be used to pay for recent acquisitions.

The bank said it has signed a deal with a syndicate of underwriters to sell 30 million shares at $50.25 per share.

The underwriters have also been granted an option for up to an additional three million shares that could increase the size of the deal to $1.66 billion.

Earlier this month, Scotiabank closed its acquisition of a 51 per cent stake in Banco Colpatria in Colombia for US$500 million in cash and 10 million Scotiabank shares.

Ex-Nortel boss defended

TORONTO -- Frank Dunn, former chief of Nortel Networks Corp., was steadfast in his pursuit to get the telecom-equipment giant back to profitability as quickly as possible a decade ago, but solely through ethical means, defence lawyers told an Ontario Superior Court of Justice trial on Wednesday.

"Nothing could be more urgent for the company and its employees than a return to profitability," the executive said in an email to Nortel's 36,000 workers in the fall of 2002.

The goal was for everyone in the organization to move past the turmoil of heavy job losses and restructuring in recent periods and redeem the century-old firm in the eyes of investors and its global network of customers.

Dunn stands accused by the Crown of two counts of fraud for earnings manipulation.

China wants say in Arctic

MONTREAL -- China may use the upcoming visit by Prime Minister Stephen Harper to try convincing him it deserves a more prominent role in the Arctic.

Next year, Canada begins a two-year term as chair of the Arctic Council, which comprises the eight nations that ring the North Pole.

Even though it has no Arctic territories, China wants a place at that table.

Zhang Junsai, the Chinese ambassador to Canada, told a Montreal audience on Wednesday his country should be allowed to be there. "Of course, China wishes to be an observer," he said.

The Arctic region may contain as much as one-quarter of the Earth's untapped oil and gas, reserves that will become more accessible as temperatures rise and polar ice caps melt.

AltaGas to buy U.S. firms

CALGARY -- AltaGas Ltd. has agreed to pay more than $1.1 billion for natural-gas businesses in Alaska and Michigan, which it says are a good fit with its own assets and part of a strategy of becoming a top North American energy infrastructure company.

The Calgary-based gas processor and pipeline operator (TSX:ALA) said Wednesday it has agreed to buy SEMCO Energy of Port Huron, Mich., from Continental Energy Systems LLC, another Michigan company. "AltaGas' vision is to be a leading North American energy infrastructure company," said chairman and chief executive David Cornhill in a statement.

-- from the news services

Republished from the Winnipeg Free Press print edition February 2, 2012 B6