Canada rejects Alliant Tech's satellite purchase

OTTAWA (Reuters) - Canada confirmed on Friday that it would block the proposed US$1.325 billion sale of sensitive Canadian satellite technology to U.S. rocket-maker Alliant Techsystems Inc (ATK.N).

Canada initially halted the deal a month ago -- in part because it feared it might lose control of top-secret images -- but gave Alliant Tech a month to appeal.

Industry Minister Jim Prentice said in a statement that he still felt the proposed sale by MacDonald Dettwiler and Associates Ltd (MDA.TO) would not be of "net benefit" to Canada.

(Reporting by Louise Egan; editing by Rory Channing)