Stock Name: CNR
Amount: CAD 0.325
Announcement Date: 25/10/2011
Record Date: 07/12/2011
Dividend Detail:
MONTREAL, Oct. 25, 2011 /CNW Telbec/ - CN (TSX: CNR) (NYSE: CNI)
announced today that its Board of Directors has authorized a new
normal-course-issuer bid to purchase, for cancellation, up to 17
million, or 3.82 per cent, of the common shares issued and outstanding
of the Company on Oct. 14, 2011. Approximately 444.8 million CN common
shares were issued and outstanding on that date.
CN recently completed its share repurchase program announced in January
2011, under which it repurchased 16.5 million common shares at a
weighted-average price of C$70.55 per share, excluding brokerage fees.
The new repurchase program - starting on Oct. 28, 2011, and ending no
later than Oct. 27, 2012 - will be conducted through the facilities of
the Toronto and New York stock exchanges, or alternative trading
systems, if eligible, and will conform to their regulations. Toronto
Stock Exchange (TSX) rules will permit CN to purchase daily, through
TSX facilities, a maximum of 226,744 common shares under the Company's
new repurchase program. Purchases under the normal-course-issuer bid
will be made by means of open market transactions or such other means
as the TSX or a securities-regulatory authority may permit, including
private agreements.
The price to be paid by CN for any common shares will be the market
price at the time of acquisition, plus brokerage fees, or such other
price as the TSX may permit.
CN's management and Board of Directors believe that the repurchase by
the Company of its shares represents an appropriate use of its funds.
Luc Jobin, CN executive vice-president and chief financial officer,
said: "With a solid balance sheet and continued strong cash flow
generation, the Company believes it is well positioned to continue its
policy of rewarding shareholders by returning additional cash through a
new share buy-back program, while pursuing other business
opportunities."
CN also announced today that its Board of Directors has approved a
fourth-quarter 2011 dividend on the Company's common shares
outstanding. A quarterly dividend of thirty-two and one-half cents
(C$0.325) per common share will be paid on Dec. 30, 2011, to
shareholders of record at the close of business on Dec. 9, 2011.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and under Canadian
securities laws, including potential purchases of common shares for
cancellation under a normal course issuer bid. CN cautions that, by
their nature, these forward-looking statements involve risk,
uncertainties and assumptions, and are subject to our board's
discretion in respect of the declaration of dividends. The Company
cautions that its assumptions may not materialize and that the current
economic conditions render such assumptions, although reasonable at the
time they were made, subject to greater uncertainty.
Important risk factors that could affect the above forward-looking
statements include, but are not limited to, the effects of general
economic and business conditions, industry competition, inflation,
currency and interest rate fluctuations, changes in fuel prices,
legislative and/or regulatory developments, compliance with
environmental laws and regulations, actions by regulators, various
events which could disrupt operations, including natural events such as
severe weather, droughts, floods and earthquakes, labor negotiations
and disruptions, environmental claims, uncertainties of investigations,
proceedings or other types of claims and litigation, risks and
liabilities arising from derailments, and other risks and assumptions
detailed from time to time in reports filed by CN with securities
regulators in Canada and the United States. Reference should be made to
"Management's Discussion and Analysis" in CN's annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian and
U.S. securities regulators, available on CN's website, for a summary of
major risks and assumptions.
CN assumes no obligation to update or revise forward-looking statements
to reflect future events, changes in circumstances, or changes in
beliefs, unless required by applicable Canadian securities laws. In the
event CN does update any forward-looking statement, no inference should
be made that CN will make additional updates with respect to that
statement, related matters, or any other forward-looking statement.
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and mid-America, from the Atlantic and
Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver,
Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit,
Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul,
Memphis, and Jackson, Miss., with connections to all points in North
America. For more information on CN, visit the Company's website at www.cn.ca.
For further information:
| Media Mark Hallman Director Communications and Public Affairs (905) 669-3384 | | Investment Community Robert Noorigian Vice-President Investor Relations (514) 399-0052 |
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