TransCanada is in talks to take over US pipeline firm Columbia Pipeline Group Inc. for as much as US$10 billion, according to reports.
In a statement, Calgary-based TransCanada said, "While we are in discussions regarding a potential transaction with a third party, no agreement has been reached and there is no assurance that these discussions will continue or that any transaction will be agreed upon. Until such time as it is appropriate to make a public announcement on any potential transaction, should one occur, TransCanada will not comment further on this matter."
A deal with Columbia Pipeline would add to TransCanada's vast natural gas pipeline network. Columbia Pipeline owns more than 24 000 km of gas pipelines in the US.
Shares of TransCanada slid 3.9% to US$35.66 in New York on Thursday, while Columbia Pipeline Group gained 8.5% to US$21.43 and Columbia Pipeline Partners fell 12% to US$15.96.
Columbia holds a strong position in pipelines serving the Marcellus and Utica shale plays of Pennsylvania, Ohio and West Virginia, which are the best performing gas-producing formations in the US.
Edited from various sources by Elizabeth Corner
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