The province's preferred option is to lump prime assets – including liquor stores, racetracks and power plants – into a super Crown corporation, and then selling a stake to the public. Such a move would allow the Liberal government to juggle competing concerns over finances and politics.

The Ontario government confirmed Wednesday it has hired two investment banks to study the possible sale of taxpayer-owned companies, including the provincial lottery corporation, its power generation company, its power distribution company and the retail monopoly on liquor sales. The review comes as the government wrestles with a record $24.7-billion deficit.

Financiers from CIBC World Markets and Goldman Sachs had their first formal meeting Wednesday with provincial civil servants. The investment bankers are expected to table an overarching strategy for the Crown corporations within two months.

If the province chooses to go ahead, the Liberal government is expected to follow one of two paths: They could go with outright sales of the iconic Crown corporations or some of the assets they hold, or try to cash in by selling a minority stake in a newly created super-corporation that would hold the government-owned companies. Source...