NEW ROLE IN INVESTING FOR QUEBEC
When the shareholders of Domtar Inc., Canada's second-largest forest products company, picked up their morning newspapers last Wednesday, they discovered that the Province of Quebec owned nearly half of the company's common shares. Representatives of the two provincial agencies that together now hold a 42 percent block of Domtar stock - the Caisse de Depot et Placement and the Societe Generale de Financement -also announced that they had told Domtar's management the day before that they expected proportionate representation on its board and executive committee. The event brought into focus a trend that has worried some investors ever since the province announced last year that Caisse de Depot, which manages $13 billion (Canadian) worth of assets for the province's pension and insurance plans, would take a more active role in Quebec's economic development. New Role for the Caisse To some observers, the move last week comfirmed suspicions that Caisse de Depot had become a potent new tool for the Quebec government in its attempt to influence the behavior of big business in the province.