PRESS DIGEST - Canada - March 12

March 12 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL:

- For the past four years, Ontario has been buying brand drugs for well below the going rate. But an elaborate payment system has been set up to prevent anyone else from finding out exactly how much the government has been paying.

Now, that information might be on the verge of becoming public. And drug companies, fearing national and even international repercussions, appear to be in a panic.

- A quarter century after aboriginal women won the right to remain status Indians when they marry non-aboriginal men, new legislation proposes that their grandchildren also be entitled to the designation.

The changes suggested by the federal government Thursday would add about 45,000 people to the Indian Register and have native leaders fearing that Ottawa would not help reserves with the costs of a sudden influx of people.

BUSINESS SECTION:

- Lehman Brothers Holdings Inc used accounting gimmicks and had been insolvent for weeks before it filed for bankruptcy in September 2008, a court-appointed examiner found.

- U.S.-based Devon Energy Corp (DVN.N) is deepening its commitment to the resurgent oil sands sector, bringing its operating know-how to a joint venture with giant BP PLC (BP.L) to develop the British multinational's long-dormant Kirby project.

NATIONAL POST:

- The Ontario Liberal government will pay severance packages worth as much as $45,000 to more than 1,250 Ministry of Revenue employees who won't lose their jobs, triggering a barrage of criticism from opposition politicians who call the move an "insult to taxpayers."

FINANCIAL POST:

- Among the shortlist of bidders for Canwest Limited Partnership, the newspaper division of Winnipeg-based Canwest Global Communications Corp CGS.V, are Alberta Investment Management Corp (AIMCO), which manages about $70-billion in public-sector pensions, Onex Corp (OCX.TO), the country's largest private-equity firm, and Macquarie Capital Markets Canada Ltd, the Canadian subsidiary of Macquarie Group (MQG.AX), the giant Australian global investment bank.

- Jean-Marc Eustache, Transat A.T. chief executive, admitted Thursday that his efforts to restore the profitability of the country's largest tour operator fell flat this winter after just about everything that could have gone wrong did.

- Potash Corp (POT.TO) dramatically improved its first quarter earnings guidance Thursday.

The company said a sharp rebound in potash demand will help it earn between $1.30 and $1.50 a share. The new estimate is way above the range of 70¢ to $1.00 guidance it gave in late January.