cp rail

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CANADIAN PACIFIC RAILWAY $164.93 (Toronto symbol CP; Shares outstanding: 153.8 million; Market cap: $27.1 billion; TSINetwork Rating: Above Average; Dividend yield: 0.9%; www.cpr.ca) has revised its takeover offer for U.S.-based railway Norfolk Southern Corp. (New York symbol NSC) for a second time. Norfolk shareholders would still receive $32.86 U.S. a share in cash plus 0.451 of a CP share for each Norfolk share held. That would give them 47% of the combined company, compared to 41% under CP’s initial offer. Under the new bid, Norfolk shareholders would also get 0.451 of a contingent value right. Each CVR entitles the holder to a cash payment based on the combined firms’ share price, ranging from zero to a maximum of $25.00 U.S., by October 20, 2017. CP expects to list the CVRs on U.S. and Canadian stock exchanges....

PLEASE NOTE: This is our last Hotline for 2015. Our next Hotline will go out on Friday, January 8, 2016. ENCANA CORP., $7.02, Toronto symbol ECA, fell 15% this week after cutting its dividend and 2016 capital spending plans. In response to the weak outlook for oil and natural gas, Encana has cut its quarterly payout by 78.6%, to $0.015 a share from $0.07 (all amounts except share price in U.S. dollars). The new annual rate of $0.06 yields 1.2%. Encana will also eliminate the 2% discount it offers to shareholders who reinvest their dividends in additional shares. In all, these moves will save it $185 million a year....

CANADIAN PACIFIC RAILWAY LTD., $169.77, Toronto symbol CP, has revised its takeover offer for U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combined firm would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Under the new deal, Norfolk shareholders would receive more stock and less cash: $32.86 U.S. a share in cash plus 0.451 of a CP share for each Norfolk share held. That would give them 47% of the combined company, compared to 41% under the original offer....

CANADIAN PACIFIC RAILWAY LTD. $175 (Toronto symbol CP; Conserva- tive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.9 million; Market cap: $26.8 billion; Price-to-sales ratio: 3.9; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.cpr.ca) has revised its takeover offer for U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combined firm would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Under the new deal, Norfolk shareholders would receive more stock and less cash: $32.86 U.S. a share in cash plus 0.451 of a CP share. That would give them 47% of the combined company, compared to 41% under the original offer....

CANADIAN PACIFIC RAILWAY LTD. $175 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.9 million; Market cap: $26.8 billion; Price-to-sales ratio: 3.9; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.cpr.ca) has revised its takeover offer for U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combined firm would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Under the new deal, Norfolk shareholders would receive more stock and less cash: $32.86 U.S. a share in cash plus 0.451 of a CP share. That would give them 47% of the combined company, compared to 41% under the original offer....

CANADIAN PACIFIC RAILWAY $190.97 (Toronto symbol CP; Shares outstanding: 152.9 million; Market cap: $29.4 billion; TSINetwork Rating: Above Average; Yield: 0.7%; www.cpr.ca) has offered to buy U.S. railway Norfolk Southern (New York symbol NSC). The combined company would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Norfolk shareholders would receive $46.72 U.S. a share in cash and 0.348 of a CP share (or roughly 50% in cash and 50% in stock). That would give them 41% of the combined firm....

CANADIAN PACIFIC RAILWAY LTD., $198.88, Toronto symbol CP, has offered to buy U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combined firm would be North America’s largest railway, with more than 56,000 kilometres of track. Buying Norfolk would also give CP greater access to ports on the U.S. Gulf Coast and Atlantic Ocean. Norfolk shareholders would receive $46.72 U.S. a share in cash and 0.348 of a CP share (or roughly 50% in cash and 50% in stock). That would give them 41% of the combined company....

CP Rail hit an all-time high of $248 in October 2014, following a major cost-cutting plan put in place by CEO Hunter Harrison, who was installed by a prominent U.S. hedge fund in 2012. The stock has moved down lately, as the railway has shipped less crude oil and other commodities. However, CP’s improving efficiency sets it up for more gains as the economy rebounds. CANADIAN PACIFIC RAILWAY $181.50 (Toronto symbol CP; Shares outstanding: 161.0 million; Market cap: $27.8 billion; TSINetwork Rating: Above Average; Yield: 0.8%; www.cpr.ca) ships freight over a 22,000-kilometre rail network between Montreal and Vancouver and links with hubs in the U.S. Midwest and northeast. In the three months ended September 30, 2015, CP’s earnings per share rose 16.5%, to $2.69 from $2.31 a year earlier. Revenue increased 2.3%, to $1.71 billion from $1.67 billion....

With $5.8-billion worth of investment planned in Alberta and Mexico, blue chip stock Canadian Utilities is poised to generate new profits.