Canadian Pacific to spin off subsidiaries

Updated 11:28 a.m. ET, Tue Feb 13, 2001

JoC ONLINE

CALGARY, Alberta - Canadian Pacific Ltd. said it will divide itself into five publicly traded companies, including CP Ships and Canadian Pacific Railway.

Chief Executive David P. O'Brien said the action will enable each company's management to "evaluate its growth opportunities and organize its capital structure according to its own industry." He said it also will make the business units easier for investors to follow.

Besides CP Ships and Canadian Pacific Railway, CP owns 86 percent of PanCanadian Petroleum and 100 percent of Canadian Pacific Hotels and Fording, a Canadian coal producer.

All of the business units were profitable last year. CP Ships, which owns Canada Maritime, Cast, Australia New Zealand Direct Lines, Montreal Terminals and Americana Ships (Lykes and TMM), had operating profit last year of approximately US$165 million.