* TSX closes up 62.29 points, or 0.43 percent, at 14,555.97
* Valeant soars after bid for Botox maker; CP Rail up on
(Adds fund manager comment, updates prices to close)
By Alastair Sharp
TORONTO, April 22 Canada's main stock index
notched a solid gain on Tuesday, helped by a surge in Valeant
Pharmaceuticals International Inc after it said it
planned to buy Botox maker Allergan Inc and an upbeat
outlook from Canadian Pacific Railway Ltd.
Valeant is not the only acquisition story bubbling in
Canada, with major gold miner Barrick Gold Corp looking
to snap up a smaller producer and its rival Goldcorp Inc
having just walked away from another deal.
"There's nothing like acquisitions to get everybody's juices
going," said John Ing, president of Maison Placements Canada.
"Barrick remains a big trader on speculation on whether they
return to the bargaining table."
Barrick gained 1.8 percent to C$19.37 in heavy trade as
Goldman Sachs upgraded the stock to a "buy" from "neutral" and
investors placed bets on whether it can pull off a bid for
Newmont Mining Corp.
Sources told Reuters on Monday that talks had hit a snag but
are likely to resume with both companies eager for a deal.
Valeant gained 7.7 percent to C$149.38 as investors cheered
its latest acquisition plan, a partnership with activist
investor Bill Ackman that could make Valeant a top five global
"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."
Shares in Canadian Pacific, the country's second largest
railway, jumped 5.3 percent to C$172.62 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.
The largest railway, Canadian National Railway Co
reported solid numbers after the bell on Tuesday.
Overall, the Toronto Stock Exchange's S&P/TSX composite
index ended the session up 62.29 points, or 0.43
percent, at 14,555.97. It hit a fresh near six-year high during
Maison's Ing said the index's sharp rise puts it at risk of
pullback as geopolitical and other risks continue to swirl.
"There's a lot of headwinds. We're up in rarefied territory,
the technical indicators are very much overbought," he said.
Rogers Communications Inc slipped 3.4 percent to
C$42.78, meanwhile, after Canada's largest wireless provider
reported a slip in profit and disappointing mobile subscriber
"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
(Reporting by Alastair Sharp; Editing by Chizu Nomiyama and Tom