TransCanada Corp. Is Reported Target Of Activist Holders

TransCanada Corp.

shares gained Thursday on a rumor that several hedge funds including activist Daniel Loeb's Third Point are eye-balling the pipeline concern as a break-up candidate. Loeb "has been amassing a position" in TransCanada in recent months, according to unnamed sources cited by Reuters Thursday. The interest has resulted in discussions by TransCanada board concerning the company's strategic direction, according to Reuters, although the company declined to comment. Reuters said interest by the funds was touched off by a June research note from Citigroup analyst Faisel Khan claiming TransCanada could be worth more than $69 a share if the company spun off its power business and formed a master limited partnership for its U.S. natural gas assets. TransCanada traded Thursday at $55.68 a share, up 4 percent.