NEW YORK (TheStreet) -- TransCanada(TRP) - Get Report stock is retreating 4.45% to $35.47 in afternoon trading on Thursday, as the company behind the Keystone Pipeline reportedly enters takeover discussions with Columbia Pipeline Group (CPGX).

The two companies could reach a deal in upcoming weeks, sources told the Wall Street Journal. 

A merger could be worth more than $10 billion, based on a typical takeover premium and including Columbia Pipeline's debt load of almost $3 billion, the Journal adds.

Shares of Columbia Pipeline are soaring 16.30% to $22.97 this afternoon.

Both stocks are trading on heavy volume today. About 3.38 million shares of TransCanada have been traded so far, nearly triple the company's average trading volume of roughly 1.15 million shares per day. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

TransCanada's weaknesses include its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TRP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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