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CALGARY — In a surprise late night move on Friday, Ottawa rejected Petronas’ $5.9-billion bid for Progress Energy Resources Corp., marking the third foreign takeover Canada’s federal government has blocked.

Christian Paradis, Minister of Industry, issued a brief statement three minutes before midnight ET on Friday, saying he was “not satisfied that the proposed investment is likely to be of net benefit to Canada.”

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Mr. Paradis refused to comment on the deal earlier Friday, telling reporters in Saint-Hubert, Quebec only “when the decision is … made, I will announce it properly.”

Malaysian state-owned Petronas, which said on Saturday it was not ready to comment, has 30 days to make its offer more palatable. Otherwise the deal will not be allowed to proceed. It was not clear what it could put on the table.

Progress Energy chief executive Michael Culbert said in a statement released Saturday afternoon that Petronas will appeal the federal government’s ruling and Progress will help “determine the nature of the issues and the potential remedies.”