TransCanadaCorp. is set to receive bids for a minority stake in its Mexicannatural gas pipeline business, a deal that could raise $2 billion to fund itsColumbia Pipeline Group Inc.acquisition, Bloomberg News reported, citing "people with knowledge of thematter."
A consortium formed by the ,Public Sector Pension InvestmentBoard and Borealis Infrastructure Corp. is planning to propose anoffer for as much as 49.9% of the pipeline business, the report said.
Caissede Depot et Placement du Quebec's Mexican joint venture, CKDInfraestructura Mexico SA, may also bid for the asset. At least three otherpotential buyers are interested in bidding, Bloomberg News reported.
"We are in the process of seeking passiveinvestors to take a minority stake in our Mexico natural gas pipelinesbusiness," Mark Cooper, a TransCanada spokesperson, told Bloomberg News. "Wewill not be providing any further updates or responding to speculation until adeal is announced." The Canada Pension Plan Investment Board, Borealis, PublicSector Pension and Caisse refused to comment.
The deal is part of TransCanada's plan to to finance its $10.2 billion acquisition of Columbia Pipeline. The company isalso planning to sell its merchant power assets in the U.S. Northeast.