18 July 2007
Canadian Pacific Railway Shares Jump on Rumours of Takeover Bid
Toronto Ontario - After a trading halt, shares of Canadian
Pacific Railway Ltd. (TSX:CP) jumped 15 percent Wednesday amid rumours of a takeover bid by a group led by Brookfield Asset Management
Inc. (TSX:BAM.A).
CP Rail confirmed it received a "highly conditional inquiry" from Brookfield but the railway's board declined to enter
takeover discussions.
On the Toronto stock market, CP Rail shares were up $11.95 at $89.
The Calgary-based operator of Canada's second-largest railway network said it issued the statement in
response to a report by a national newspaper.
Calgary-based CP Rail said it receives inquiries from time to time but is not in negotiations at this time with any party
about a business combination. However, CP Rail added, there's no assurance that negotiations won't begin at some time or, if they do,
that they would result in a transaction.
The national newspaper, citing sources, said Brookfield is partnering with American investment bank Goldman Sachs and Quebec's Caisse
de depot pension fund in preparing a takeover offer.
Brookfield shares were down 19 cents at $41.36.
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