BMO Capital Reiterates Outperform on TransCanada (TRP) Following Offer to CPPL
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BMO Capital reiterated an Outperform rating and $65.00 price target on TransCanada Corporation (NYSE: TRP) following an offer to acquire all outstanding units of its MLP, Columbia Pipeline Partners, for US$15.75/unit, or $848M. The transaction is subject to CPPL board and unitholder approval, as well as related regulatory approval under Hart-Scott-Rodino.
Analyst Ben Pham commented, "We reaffirm our Outperform rating and $65 target price on TransCanada following an offer to acquire its remaining interest in Columbia Pipelines Partner (CPPL) that it does not already own. On top of simplifying the ownership structure while retaining TC Pipelines as its flagship MLP vehicle for potential future drop-downs, we also estimate EPS deal accretion of ~2% even when conservatively assuming a discrete equity offering early next year."
Shares of TransCanada Corporation closed at $47.11 yesterday.
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Related EntitiesBMO Capital, Definitive Agreement, Equity Offerings
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