Calgary Alberta - Canadian Pacific Railway Limited announces that the Toronto Stock Exchange has accepted CP's notice to implement a normal course issuer bid (NCIB) to purchase, for cancellation, up to 5,270,374 common shares, being 3 percent of the common shares outstanding as of 4 Mar 2014.
 
The NCIB is scheduled to commence on 17 Mar 2014 and is due to terminate no later than 16 Mar 2015.
 
CP believes that the purchase of its shares from time to time is an appropriate and advantageous use of the Corporation's funds.
 
"Today's announcement demonstrates Canadian Pacific's confidence in the long-term prospects of the company and our commitment to optimizing capital deployment to enhance total shareholder return." said E. Hunter Harrison, Chief Executive Officer.
 
"Our strong balance sheet and improved cash flow affords us the flexibility to reward shareholders while continuing to pursue our business strategy and invest in the franchise."
 
Purchases of CP common shares may be made through the facilities of the TSX, the New York Stock Exchange (NYSE), and alternative trading platforms by means of open market transactions, or by such other means as may be permitted by the TSX and under applicable securities laws, including by private agreement pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities.
 
The price CP will pay for any common shares will be the market price at the time of purchase or such other price as may be permitted by the TSX.
 
Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price.
 
As of 4 Mar 2014, CP had 175,679,130 common shares issued and outstanding.
 
Subject to certain exceptions to make block purchases, CP will not acquire through the facilities of the TSX more than 82,954 common shares during a trading day, being 25 percent of the average daily trading volume of CP common shares on the TSX for the six calendar months prior to the date of approval of the bid by the TSX.
 
The actual number of common shares that will be repurchased under the NCIB, and the timing of any such purchases, will be determined by CP.
 
There cannot be any assurances as to how many common shares, if any, will ultimately be acquired by CP under the NCIB.

Author unknown.