C.A. Bancorp Inc.

C.A. Bancorp Inc.

January 27, 2010 16:59 ET

C.A. Bancorp Provides Update on Its Strategic Process and Advises Shareholders NOT to Tender to the Maxam Offer

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2010) - C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp" or the "Company") wishes to provide an update to shareholders concerning the status of the Company's process initiated in response to the hostile take-over bid by Maxam Acquisition Corporation ("Maxam").

The Company continues to be actively engaged in its strategic review process. As part of that process, the Company is in advanced discussions with a number of interested third parties which have proposed transactions at values in excess of the Maxam offer. The Company is also considering other potential value-maximizing alternatives which could yield values superior to the Maxam offer. The Company will update shareholders further regarding its strategic review process when it is appropriate.

Maxam's offer is scheduled to expire next Tuesday, February 2, 2010. The Company expects that the conditions of Maxam's offer, including the condition relating to the Company's shareholder rights plan, will not have been satisfied by that expiry date and Maxam will not be able to take up and pay for any shares that have been tendered.

C.A. Bancorp shareholders are advised to NOT tender to the Maxam offer before the Board and its advisors have had an opportunity to fully explore all available alternatives. There is no advantage to tendering your shares early. There can be no assurance that any alternative transaction will result from the Company's strategic review process.

For Investor Questions

Shareholders who have questions may do so by contacting the Company's information agent, Kingsdale Shareholder Services Inc., toll free at 1-888-518-1556, or by e-mail at contactus@kingsdaleshareholder.com.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

This news release contains forward-looking statements. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. These cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf relating to the subject matter of this press release. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any of such forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

Contact Information

  • C.A. Bancorp Inc.
    Paolo De Luca
    Chief Financial Officer
    416-861-8166 (FAX)