CP SHAREHOLDERS APPROVE BREAKUP PLAN
Canadian Pacific Limited’s common and preferred shareholders approved a plan to divide the corporation into five independent public companies.
The so-called “plan of arrangement” was approved Wednesday at a special shareholder’s meeting in Calgary, Alberta. Shareholders also approved the stock option plans adopted by Canadian Pacific Railway Ltd., CP Ships Ltd., Fairmont Hotels & Resorts and Fording Inc.
The plan of arrangement is subject to the approval by the Alberta Court of Queen’s Bench. If court approval is obtained, Canadian Pacific Limited expects that the plan of arrangement will become effective on Oct. 1.
“I’m pleased but not surprised that our shareholders voted so strongly in favor of the breakup,” said David P. O’Brien, chairman, president and chief executive officer of Canadian Pacific Limited.
He added: “Today’s decision will equip all five companies to pursue even greater success by providing them with growth opportunities and direct access to public equity markets. It will allow investors to value these industry leaders in a stand-alone basis against competitors, benchmarks and performance criteria specific to each business sector.”