TORONTO, Aug. 12, 2013 /CNW/ - CIBC (TSX: CM) (NYSE: CM) announced today further disclosure on Aeroplan
contract negotiations:
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CIBC formally advised Aimia on August 9, 2013 that the notice and
proposed agreement provided to CIBC on June 26, 2013 is not valid
because it fails to comply with Aimia's obligations to CIBC under the
existing credit card agreement, which expires on December 31, 2013. As
previously stated, the notice and proposed agreement was structured in
a way that nullifies CIBC's right of first refusal and ability to
match.
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Notwithstanding the above, there are ongoing active discussions among
CIBC, TD, and Aimia about a broad framework that would see CIBC sell
approximately 50 per cent of the current Aerogold portfolio to TD with
the accounts being divested consisting primarily of credit card only
clients. Consistent with its strategy to invest in and deepen client
relationships, CIBC would retain the Aerogold credit card accounts held
by clients with broader banking relationships. The parties are actively
working to reach an agreement, complete due diligence and finalize
definitive documentation by Aug 26, 2013.
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There can be no assurances that an agreement will be reached. In the
event an agreement is not reached, CIBC retains its rights to exercise
its legal options under the provisions of its existing contract with
Aimia.
About CIBC
CIBC is a leading North American financial institution with more than 11
million personal banking and business clients. CIBC offers a full range
of products and services through its comprehensive electronic banking
network, branches and offices across Canada, and has offices in the
United States and around the world. You can find other news releases
and information about CIBC in our Media Centre on our corporate website
at www.cibc.com.
SOURCE CIBC
Kevin Dove, Head of External Communications at 416-980-8835, kevin.dove@cibc.ca.
Copyright CNW Group 2013