CANADA STOCKS-TSX rises, led by CP Rail on railroad merger prospects

Thu Jan 19, 2017 4:48pm EST
 
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(Adds portfolio manager quotes and details on Hunter Harrison in paragraph 5 and updates prices)

* TSX ends up 11.96 points, or 0.08 percent, at 15,409.81

* Five of the TSX's 10 main groups end higher

By Fergal Smith

TORONTO, Jan 19 (Reuters) - Canada's main stock index edged higher on Thursday, helped by a jump in Canadian Pacific Railway shares on prospects of consolidation in the railroad industry and a rebound of uranium producer Cameco Corp.

Canadian Pacific Railway rose nearly 4 percent to C$200.11 a day after saying its chief executive, Hunter Harrison, would leave five months earlier than originally expected and reporting a lower-than-expected adjusted quarterly profit.

"Many people believe that there will be consolidation in this industry," said John Stephenson, president & CEO of Stephenson & Company Capital Management.

"Someone who has the operational record of a Hunter Harrison is probably going to be one of the people to do it."

Harrison is in advanced talks to team up with a former Pershing Square Capital partner, seeking to shake up rival railroad CSX Corp, according to a person familiar with the matter.   Continued...