The Globe and Mail reports in its Tuesday edition that West Fraser Timber's share price went on a roller-coaster ride on Tuesday as investors speculated about a potential takeover. The Globe's Brent Jang and Andrew Willis write that West Fraser's stock price jumped as much as 23 per cent on the Toronto Stock Exchange in the morning, shortly after Reuters reported that two European-based firms are interested in acquiring the Vancouver forestry company. The takeover fever later subsided as shares in West Fraser closed at $123.83, up $15.89 on the day, or a 15-per-cent gain. In a statement issued four hours after the TSX opened, West Fraser said it "is aware of recent market and media speculation," and added that it previously met with Kronospan, an existing shareholder, and CVC Capital Partners, a private equity firm. Wales-based Kronospan is a major manufacturer of wood-based panels in Europe. Kronospan, through Banasino Investments Ltd., recently owned 8.2 million West Fraser common shares, or a 9.4-per-cent stake. West Fraser said it "has not received a proposal and there are no ongoing discussions regarding the terms of any transaction." B.C. billionaire Jim Pattison has a 10.2-per-cent interest in West Fraser.
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