Canadian Natural, EnCana May Decline; Teranet May Advance

By John Kipphoff

Oct. 15 (Bloomberg) -- Canadian Natural Resources Ltd. may decline, based on bids on the Toronto stock exchange, after crude-oil prices fell on speculation the bailout of the world's banks won't stave off recession and prop up global fuel demand.

EnCana Corp. may also slide, bids indicated, after the company said that it's delaying a planned split into separate oil and gas companies. Teranet Income Fund may rise after its board of trustees withdrew its recommendation that unitholders reject a hostile buyout bid.

The Standard & Poor's/TSX Composite Index jumped 9.8 percent to 9,955.66 yesterday in Toronto, its steepest advance In almost 32 years, after the U.S. outlined plans to invest $250 billion in banks in an attempt to solve the credit crisis and bolster economic growth.

Crude oil for November delivery fell as much as 4.7 percent to $74.97 in electronic trading in New York, slipping below $75 a barrel for the first time since September 2007

Canadian Natural, whose Horizon oil-sands project is scheduled to being production this year, may drop C$3.22 to C$52.01, bids already submitted on the Toronto Stock Exchange showed. The stock jumped 15 percent yesterday.

EnCana may slip C$1.80 to C$49, according to bids. Canada's largest energy company by market value is delaying a plan to split itself into oil and natural-gas producers because of ``uncertainty and volatility'' in financial markets worldwide. The shares gained 17 percent yesterday.

Teranet may add 10 cents to C$10.60, based on bids. The land registry company's board of trustees said that it ``urges unitholders to make their own decision regarding whether they wish to accept'' an C$11-share offer from Borealis Infrastructure Management Inc. ``A superior offer is unlikely to emerge'' before the Borealis offer expires on Oct. 17, the board said.

U.S. stock-index futures extended declines after deeper- than-estimated slumps in retail sales and New York manufacturing heightened concern the economy is in a recession.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.