Bloomberg News

TransAlta, Research In Motion May Advance; Barrick May Climb

July 21, 2008

TransAlta Corp. (TA) may advance, based on bids on the Toronto Stock Exchange, after LS Power Equity Partners and Global Infrastructure Partners offered to buy the electricity provider for C$39 a share in cash.

Research in Motion Ltd. may rise after co-Chief Executive Officer James Balsillie said in an interview with Bloomberg News that companies will continue to pick the BlackBerry over Apple Inc.'s iPhone. Barrick Gold Corp. (ABX) may advance for the first time in five days after Cadence Energy Inc. ended a merger pact with Daylight Resources Trust and agreed to be acquired by the world's largest gold producer.

The Standard & Poor's/TSX Composite Index (SPTSX) rose 0.4 percent to 13,515.96 July 18 in Toronto. Canada's main stock measure fell six straight weeks, the longest streak since 2001.

TransAlta may rise 14 percent to C$36.75, according to bids. Canada's largest publicly traded electricity producer said it will review the takeover offer and ``respond in due course.''

Research in Motion may gain 2.5 percent to C$116.60, according to bids. Companies will continue to choose Blackberry products over the iPhone because the e-mail service is more reliable and the keyboard is better for business users, Balsillie said. ``We know where we're headed,'' Balsillie said at the company's headquarters in Waterloo, Ontario. ``We've got all the growth we can handle.''

Barrick may add 0.6 percent to $48, bids showed. Cadence said this morning it ended a merger agreement with Daylight Resources Trust, allowing it to proceed instead with Barrick's acquisition. Barrick also said Greg Wilkins resigned as chief executive officer and the company is searching for a successor.

Crude oil rose for the first time since July 15. The slowing global economy, faltering U.S. fuel demand and rising supplies drove crude oil below the record $147.27 a barrel reached on July 11.

U.S. stock-index futures rose after Bank of America Corp. exceeded analysts' estimates, bolstering expectations that the worst of the subprime crisis may be over.

Standard & Poor's 500 Index futures expiring in September added 6.40 points, or 0.5 percent, to 1,266.80 at 9:07 a.m. in New York. Dow Jones Industrial Average futures gained 41, or 0.4 percent, to 11,542, and Nasdaq-100 Index futures advanced 9.75, or 0.5 percent, to 1,838.50. Stocks in Europe and Asia also rose.

To contact the reporter on this story: Katherine Greene in New York at kgreene8@bloomberg.net.

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net.


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