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Reuters Canada Business Summary

18/07/07

CP Rail says Brookfield inquired, was rebuffed

VANCOUVER, British Columbia (Reuters) - Canadian Pacific Railway Ltd. , one of North America's biggest railways, said on Wednesday it had rejected an "inquiry" by Brookfield Asset Management. and denied it was in takeover discussions, but its shares soared. CP, whose corporate roots run deep in Canadian history and folklore, said the inquiry from Brookfield -- reported to be leading a private equity consortium -- was made earlier this year and was "highly conditional," seeking exclusive negotiations and due diligence.

Nymex bids vs. ICE for Winnipeg Exchange: report

NEW YORK (Reuters) - The New York Mercantile Exchange has made a bid for the Winnipeg Commodity Exchange after IntercontinentalExchange Inc. agreed to acquire it last month, according to a news report on Wednesday. Bloomberg News reported on its Web site that Nymex Holdings Inc. , the world's largest energy exchange, is the mystery bidder for the Winnipeg exchange, citing a person familiar with the matter.

Toronto stocks surge on CPR takeover speculation

TORONTO (Reuters) - The Toronto Stock Exchange's benchmark index sprinted late in Wednesday's session to a record high, boosted by takeover speculation surrounding Canadian Pacific Railway Ltd. and rising energy and gold-mining issues. The S&P/TSX composite index <.GSPTSE> closed up 201.65 points, or 1.4 percent, at 14,583.66 -- the first time it has cleared the 14,500 mark. It surpassed its previous high, set last week, by 87 points.

Canada inflation stays above target in June

OTTAWA (Reuters) - Canadian consumer prices unexpectedly fell in June, but that is unlikely to deter the Bank of Canada from raising interest rates in September, analysts said on Wednesday, as the annual inflation rate stayed well above target. A 0.2 percent drop in the consumer price index in June may give the central bank a little breathing room in its anti-inflation battle and lessens the need for an aggressive round of rate hikes. The bank raised its key overnight target by 25 basis points to 4.50 percent last week, ending the longest pause in three decades.

Alcan to sell Utkal alumina stake to Hindalco

MONTREAL (Reuters) - Alcan Inc. said on Wednesday it will sell its 45 percent interest in Utkal Alumina International Ltd. in India to joint-venture partner Hindalco Industries Ltd. Alcan, the target of a friendly $38-billion takeover offer from Rio Tinto Plc , said in April that it planned to sell the stake in Utkal.

Shoppers profit jumps 19 pct, same-store sales up

TORONTO (Reuters) - Shoppers Drug Mart , Canada's biggest drug store chain, said on Wednesday its second-quarter profit jumped 19 percent on healthy sales growth. For the quarter ended June 16, Shoppers said it earned C$112 million ($107.7 million), or 52 Canadian cents a share. That was up from a profit of C$94 million, or 44 Canadian cents a share, in the same period last year.

Chrysler scraps plans for new Imperial luxury car

DETROIT (Reuters) - Chrysler Group has scrapped plans for a luxury sedan that would have represented a bigger, heavier and less-fuel-efficient version of its Chrysler 300C, citing high gasoline prices and tougher fuel economy standards. Chrysler said on Wednesday that it was dropping production plans for the Imperial, a high-riding luxury sedan that prompted comparisons with the Rolls-Royce Phantom.

Oil rises $1 on sharp fall in U.S. gasoline stocks

NEW YORK (Reuters) - Oil jumped more than a dollar on Wednesday after a steep drop in U.S. gasoline stocks fanned concerns the world's top consumer could face a shortfall during the peak summer driving season. Plagued by a string of unplanned outages, U.S. refiners have drawn down inventories to keep up with growing gasoline demand, helping push oil prices up near record peaks.

Canadian dollar falls on CPI, bonds mixed

TORONTO (Reuters) - The Canadian dollar was softer versus the greenback on Wednesday, as an unexpected fall in inflation dented expectations for the number of future interest rate hikes by the central bank. Domestic bonds prices were mostly higher after the data.

Rail stocks up on Canadian Pacific bid report

CHICAGO (Reuters) - North American railroad stocks rose on Wednesday following a report that a private equity consortium plans to bid for Canadian Pacific Railway Ltd.

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