Canadian Pacific Railway takeover bid rumors most likely false
Canadian stocks jumped their highest since January on speculations of a Canadian Pacific Railway Ltd. takeover, as the company confirmed it received a bid earlier this year from Brookfield Asset Managment Inc. (one of Canada’s largest investment companies). Brookfield, along with American investment bank Goldman Sachs and Quebec’s Caisse de Depot pension fund, is in process of preparing a takeover offer (The Globe and Mail). CPR, the railway that helped create modern Canada, witnessed its shares (TSX:CP) surge more than 16 percent after a day of heavy trading on the TSX. The S&P/TSX Composite Index itself 201.65, or 1.4 percent, to a record 14,583.66.
This is probably just another one of those examples of market stupidity displayed in Canada. Investors simply overreacted over the news today. I think the huge number of takeovers we have had recently are just urging investors to look for what’s next. They were just overexcited that it might just be one of the largest leveraged buyouts in Canadian history. CPR’s Board of Directors themselves said they recieve inquiries from time to time, but are not in any negotiations at the moment. CPR commented on the rumour as a “highly conditional inquiry”.
I think the last comment speaks for itself. Well at least the speculation created a great day for Canadian markets..
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