Canada blocks sale of space tech firm

"While ATK is disappointed that the MDA acquisition did not close, the company will continue pursuing a disciplined capital deployment strategy that includes strategic acquisitions, debt repayment and share repurchases," the defense contractor said.

Alliant Techsystems shares fell $1.12 to $110.95 in midday trading Friday.

Alliant and MDA had argued that the sale of the space unit would give the division access to more lucrative contracts, especially in the United States.

Only hours after confirming the blocked sale, Prentice announced a major contract Friday between MDA and the Canadian Space Agency.

Prentice said the government has awarded a four-year 109 million Canadian dollars ($108 million) contract extension that will have MDA continue to provide logistics and engineering and technology services for the Canadian-made Mobile Servicing System on the International Space Station.

Prentice said earlier this week in Washington that he anticipated MDA would continue to be part of Canada's "vibrant space program."

Prentice made a point Friday of saying that foreign investment is welcome in Canada.

"Foreign investment plays an important role in the Canadian economy," Prentice said.

"However, where a significant transaction does not demonstrate net benefit to Canada, it cannot be approved under the Investment Canada Act."

Prentice received a standing ovation in Parliament when he first announced the decision last month. He is considered Prime Minister Stephen Harper's most trusted minister.