CP Rail denies company in buyout talks

CALGARY — Canadian Pacific Rail says it is not in discussions over the possible sale of the railway.

The announcement came a day after rumors surfaced on Wall Street that a private equity consortium, led by New York firm Brookfield Asset Management, was preparing a takeover bid for CP Rail.

The Globe and Mail reported this week that Brookfield, in partnership with Goldman Sachs, had considered a buyout of the railway several months ago, but was rebuffed.

The consortium reportedly is asking for another meeting with CPR’s directors, as the group does not want to launch a hostile bid.

In response today, Canadian Pacific said it receives inquiries about possible acquisitions or mergers from time to time, as the company “continues its strong financial performance.”

CP noted that it considered the consortium’s previous inquiry “inadequate.” While CP continues to receive interest, “it is not at this time in negotiations with any party with respect to a business combination.”

“No assurance can be given that such negotiations
might be entered into or that, if entered into, any transaction would result.”

The railway added that its corporate policy is not to comment on rumors and it does not intend to comment further on the issue.