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CP considers late-September stockholder vote on corporate split

Canadian Pacific Ltd. July 3 announced plans to hold a special shareholders meeting on or about Sept. 26 to conduct a vote on the corporation's proposed split into five separate companies.
CP recently received an interim order from Court of Queen's Bench of Alberta authorizing the vote.
CP plans to mail proxy material to shareholders in mid-August, by which time the corporation will schedule the late-September stockholder meeting.
Shortly after the meeting, CP plans to submit a final application to the court seeking approval to implement its plan of arrangement — subject to a favorable Canadian tax ruling and certain other conditions.
The court received submissions from holders of 4 percent perpetual consolidated debenture stock in Canadian Pacific Railway seeking a right to vote on the reorganization plan, which CP officials oppose. A separate hearing on that matter will be held July 9.
Under CP's plan, stockholders would have the option of receiving $26 per share (plus accrued but unpaid dividends) for each preferred share; identical preferred shares of a special-purpose corporation that would hold sufficient Canadian government securities or short-term bank instruments; or preferred shares in one of the five spun-off companies.

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More News from 7/5/2001