Canada blocks sale of space tech firm

Industry Minister Jim Prentice first turned down the $1.3 billion takeover bid last month for Vancouver-based MDA's space division by Alliant Techsystems Inc., a U.S.-based munitions and rocket component maker.

Alliant Techsystems had 30 days to appeal the decision and the deadline passed Thursday.

It is the first time Canada has rejected a foreign takeover outright in the 19 years since the Canada Investment Act took effect in 1989.

Prentice said the sale of MDA's taxpayer-subsidized space and satellite division would not benefit Canada.

MDA is the builder of Canadarm, the robotic limb used on the space shuttle and on the International Space Station.

It also built the Radarsat 2 satellite that allows the government to monitor ships and submarines in Canada's Arctic -the only such satellite Canada has.

"I have confirmed my initial decision that I am not satisfied that ATK's proposed acquisition of the Information Systems Business of MDA would likely be of net benefit to Canada," Prentice said in a release.

Alliant Techsystems said in a statement on its web site that it was "disappointed" that Prentice disapproved of the sale.

The company, based near Minneapolis, said it will take a $6.6 million pretax charge for transaction-related expenses on the failed deal.