TORONTO, Aug. 12, 2013 /CNW/ - CARDS II is providing notification of a press release issued earlier today by CIBC which contained the following disclosure:
CIBC Provides Further Disclosure on Aimia
TORONTO, Aug. 12, 2013 - CIBC (TSX: CM) (NYSE: CM) announced today further disclosure on Aeroplan contract negotiations:
- 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.
- 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.
- 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.