(The Associated Press circulated the following on July 18.)
NEW YORK — Shares of rail companies rose on Wednesday on speculation that a private equity group is preparing a takeover offer for Canadian Pacific Railway Ltd.
According to The Globe and Mail, the buyout group led by Brookfield Asset Management Inc. asked for a meeting with Canadian Pacific’s directors to discuss the benefits of a takeover.
In a statement, Canadian Pacific said it would not comment on the recent speculation, but said it has received a number of inquiries related to possible acquisitions recently.
“While Canadian Pacific continues to receive such inquiries, it is not at this time in negotiations with any party with respect to a business combination,” the company said.
Shares of railroad operators have risen in recent months since Warren Buffett disclosed his significant position in Burlington Northern Santa Fe Corp. and Norfolk Southern Corp., sparking interest in the sector.
Canadian Pacific Railway Ltd. rose $15.71, or 21.1 percent, to $89.70, hitting a 52-week high of $90.15 earlier in the session.
Kansas City Southern rose $1.06, or 2.6 percent, to $41.51, and CSX Corp. gained $1.78, or 3.7 percent, to $50.30.
Union Pacific Corp. gained $3.05, or 2.5 percent, to $126.95, and Burlington Northern Santa Fe Corp., rose $2.23, or 2.4 percent, to $92.83.
Norfolk Southern Corp. also climbed $1.98, or 3.5 percent, to $58.60.