CALGARY, March 23 /PRNewswire-FirstCall/ -- Canadian Pacific Railway Limited (TSX/NYSE: CP) announced today that it filed a Notice of Intention to make an exempt issuer bid with the Autorite des marches financiers in the Province of Quebec to purchase for cancellation up to 275,000 of its outstanding common shares (the "Bid"), or approximately 0.18% percent of the 155,534,263 common shares outstanding at March 15, 2007.
CPR intends to purchase these shares pursuant to a private agreement between CPR and an arms-length third party seller located in the Province of Quebec. The Bid will commence on March 29, 2007 and will terminate on March 28, 2008 or on such earlier date as CPR completes its purchases pursuant to the Bid or provides notice of termination of the Bid. The price that CPR will pay for any shares purchased by it pursuant to the Bid will be negotiated by CPR and the seller, provided that in no circumstances will the price paid for the shares be greater than the market price of CPR's common shares on the Toronto Stock Exchange on the date of the agreement. CPR presently intends to fund the purchase of the shares from its working capital. Payment for the shares purchased pursuant to the Bid will be made by CPR at the time of delivery of the share certificate(s) representing such purchased shares.
The purpose and business reason for purchases made pursuant to the Bid is that CPR believes that purchasing certain of its common shares from the seller at a price below the market price of its common shares is an attractive and appropriate use of corporate funds.
None of the directors or senior officers of CPR, nor any associates or affiliates thereof or of CPR, nor any person holding 10% or more of any class of equity securities of CPR, nor any associates thereof are eligible to sell common shares pursuant to the Bid since CPR intends to purchase common shares pursuant to the Bid only from the seller.
About CPR
Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, and most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 900 communities where we operate. Our combined ingenuity makes CP a better place to work, rail a better way to ship, and North America a better place to live. Come and visit us at http://www.cpr.ca/ to see how we can put our ingenuity to work for you. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.
