BUZZ-Veresen Inc: To buy stake in Ruby pipeline

Tue Sep 23, 2014 11:58am EDT
 
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** Canadian pipeline company's shares down 3.6 pct at C$16.55 in late morning trading

** Company said on Monday it would buy Global Infrastructure Partners' 50 pct interest in Ruby pipeline system for $1.43 billion

** Company to become Kinder Morgan Inc's equal partner in the Ruby line, which carries as much as 1.5 billion cubic feet per day of natural gas

** Analysts at Raymond James say Veresen paid about 10 pct higher for the pipeline stake, compared to what El Paso Pipeline Partners LP paid for Kinder Morgan's 50 pct interest in the pipeline system in April

** Up to Monday's close, Veresen shares had risen 40 pct in 12 months