(The following story by Scott Deveau appeared on the National Post website on April 27.)
OTTAWA — Canadian National Railway Co. denied Friday it is was looking at acquisitions in its efforts to expand its new non-rail venture, CN WorldWide North America.
Earlier this month, Canada’s largest railway announced its plans to expand its existing warehousing, distribution, customs, and truck brokerage services under the umbrella of CN WorldWide North America.
The announcement prompted Blackmont Capital analyst Barbara Gray to speculate that Livingston International Income Fund may be an attractive property for the railway because it would give CN 25% of the country’s customs brokerage market and accelerate the process of establishing the new venture.
Livingston’s stock had shot up 11% since Ms. Gray’s note on April 11, peaking Tuesday at $24 a share on the TSX.
However, it began to tumble back to $22.88 as of close Thursday.
CN’s policy is not to comment on negotiations, however, railway spokesman Jim Feeny said the intention of the railway is to grow the new
enterprise “organically.”
Livingston spokeswoman Dawneen MacKenzie said the company was left “shaking their heads” over its soaring stock price. She said there has been no talks between Livingston and the railway.