CALGARY • Pipeline giant TransCanada Corp. the proponent of the controversial Keystone XL pipeline from Alberta to Texas, could be the next Canadian target of U.S. activist hedge funds looking to boost value through a breakup.

The company’s shares have been strong despite KXL’s continuing setbacks, and gained 3.31% on the breakup speculation to reach $60.81 in Toronto  Thursday. But several U.S. activist hedge funds are reviewing the Calgary-based pipeline and power company, Reuters reported.

Among them is Daniel Loeb’s Third Point, which has amassed a position during the past few months, Reuters said, citing people close to the matter. Third Point declined to comment.

Discussions about a potential breakup campaign are still in the early stages, but some of TransCanada’s largest shareholders have been contacted by hedge funds interested in shaking up one of North America’s biggest pipeline companies, the people said.

David Neuhauser, managing director of Livermore Partners, an energy-focused hedge fund based in Northbrook, Ill. said hedge funds are increasingly eyeing energy infrastructure players because there is high demand for their assets.

“The whole shale revolution has increased the need for logistics, and if you own tolls and have the takeaway capacity, you can see a tremendous amount of value being driven from that,” said Mr. Neuhauser, who doesn’t own TransCanada stock because he feels the company’s shares are already well valued.

In addition, he said it’s well-known that TransCanada competitor Kinder Morgan Inc. is looking to acquire midstream assets following its restructuring last month, which reduced its borrowing costs.

Rich Kinder, chairman and CEO of the Houston-based company, said in a conference call Aug. 12 that his company could grow further through purchases in the natural gas and crude-oil pipeline and processing sector.

TransCanada is a large owner of natural gas and oil pipelines, power generation plants and gas storage.

The Keystone pipeline remains mired in delays, six years after TransCanada first submitted its applications. The delays have increased the project’s costs, but TransCanada has moved ahead other plans, including the Energy East oil pipeline project from Alberta to the East Coast.

The hedge fund actions led to discussions by the TransCanada board surrounding the company’s strategic direction, Reuters said.

Shawn Howard, spokesman for TransCanada, said his company doesn’t comment on rumours.

“We are committed to acting in the best interests of shareholders and the enhancement of shareholder value is discussed at every meeting of TransCanada’s board of directors,” he said in an emailed statement. “TransCanada has a well-defined strategic plan in place to increase long-term shareholder value and we are focused on continuing to deliver on this plan successfully.”

Hedge funds have been very active in Canadian energy recently, supported by the high U.S. dollar and enticed by Canada’s relatively lower energy stock valuations.

They are joining private U.S. equity and other investors who see upside potential in Canada relative to the overheated U.S. energy sector.

Orange Capital LLC, a New York-based fund, has built a position in Calgary-based Bellatrix Exploration Ltd. It wants the midsized producer to explore strategic alternatives including a sale, look at the size and composition of its board, and a possible IPO or sale of the companys midstream assets.

Hedge funds have also been all over Penn West Petroleum Ltd. which Thursday announced a restatement of its results after finding accounting irregularities; Talisman Energy Inc. which has been talked as a breakup candidate; and Athabasca Oil Corp. which is seen as a takeover or breakup candidate.

Mr. Neuhauser predicted the influx would continue.

“You are going to see more U.S. investors like ourselves, Third Point and others, who will take larger and more dynamic positions in Canada, especially given the [share] weakness, because Canada has a phenomenal resource base, it’s low risk, and as we go forward the demand side of the curve is going to be increasing,” he said.