CANADA STOCKS- CP outlook, Valeant deal inject cheer into TSX

Tue Apr 22, 2014 10:56am EDT

(Adds portfolio manager comment, details, new price action)
    By Alastair Sharp
    TORONTO, April 22 (Reuters) - Canada's main stock index rose
on Tuesday, helped by a surge in Valeant Pharmaceuticals
International Inc after it agreed to buy Botox maker
Allergan Inc and an upbeat outlook from Canadian Pacific
Railway Ltd.
    Shares in Canada's second largest railway jumped 5.4 percent
to C$172.83 after it reported strong first-quarter profit and
said it could still meet its full-year targets despite one of
the harshest winters in decades. 
    Valeant gained 5.3 percent to C$146.06 as investors cheered
its latest acquisition plan, a partnership with activist
investor Bill Ackman that could make Valeant a top five global
pharmaceutical company. 
    "Valeant is a growth story. There is a big chunk of the
market that likes growth," said Michael Simpson, a senior
portfolio manager at Sentry Select Capital Corp.  
    "They like the fact that they're possibly teaming up with an
activist investor who's got a decent track record, Bill Ackman,
in their potential acquisition of Allergan."
    Rogers Communications Inc slipped 3.1 percent to 
C$42.84, meanwhile, after Canada's largest wireless provider
reported a slip in profit and disappointing mobile subscriber
adds. 
    "Maybe the expectations on a new CEO coming in and dazzling
analysts with some new area of growth were too high, but as it
declines I would see it as a buying opportunity," Sentry's
Simpson said.
    By mid-morning the Toronto Stock Exchange's S&P/TSX
composite index was up 26.78 points, or 0.18 percent,
at 14,520.46. That notched it to a fresh six-year high.

 (Reporting by Alastair Sharp; Editing by Chizu Nomiyama and Tom
Brown)
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