Petronas and everything after

The Globe explains what precipitated Christian Paradis’ 11:57pm announcement on Friday night.

After a long stretch when the deal seemed to be on track, the transaction “came unglued” quite suddenly Friday after the federal government unexpectedly sought to extend talks, said one of the people. Behind the scenes, Petronas had made offers of concessions but was getting little feedback on what it would take to get the deal done, the person said, and was out of patience.

The government had already used up its chance to unilaterally extend talks, and by law could only continue the negotiations with Petronas beyond the deadline with the agreement of the Malaysian company. Petronas did not want to continue talking “indefinitely,” so it took the risk of demanding the federal government make a call, said a second person with knowledge of the situation.

The New Democrats are unimpressed.

“The lack of transparency is starting to reach new heights. Who releases such an important decision at midnight on a Friday? Someone who has something to hide and no way to explain,” Mulcair said.

All eyes now turn to the stock market.