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Canadian Pacific to split
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February 13, 2001: 8:29 a.m. ET
Conglomerate plans to spin off rail, shipping, oil, coal businesses
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NEW YORK (CNNfn) - Canadian Pacific Ltd. said Tuesday it plans to split into five publicly traded companies, spinning off its rail, shipping, petroleum and coal businesses and keeping its hotel operation.
 The Calgary, Canada-based conglomerate said it will spin off Canadian Pacific Railway, which operates coast-to-coast in Canada and also operates in regions of the U.S.; CP Ships, its cargo shipping business; PanCanadian Petroleum, its crude oil production and marketing business; and Fording, its coal business.
Canadian Pacific said it will hold on to Canadian Pacific Hotels & Resorts, Canada's largest hotel operation, which also has properties in the U.S., Mexico, Bermuda and Barbados. Among its more famous properties are the Plaza hotel in New York City and the Fairmont San Francisco.
"We expect this distribution will not only unlock significant value now, but also will provide sustainable value for Canadian Pacific's shareholders over the long term," Chairman, President and CEO David P. O'Brien said.
"As independent companies, each will be able to react decisively to the competitive forces in its own market, and pursue short- and long-term strategies that are appropriate to its industry," O'Brien said.
Canadian Pacific plans to effect the spinoff by distributing its stock in the different businesses to Canadian Pacific shareholders, leaving them with stock in five different companies. Canadian Pacific said this plan could change "in response to market conditions as the process unfolds."
 The distribution is subject to shareholder and court approvals, and the company has sought opinions from the Canadian and U.S. governments about the tax impact of the plan. The company plans to complete the distribution by the fall of 2001.
Canadian Pacific, which has about 43,000 employees and about $10 billion in annual sales, trades on the Toronto stock exchange and has American depositary receipts (ADRs) trading on the New York Stock Exchange.
Canadian Pacific (CP: Research, Estimates) ADRs closed Monday at $33.94. 
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