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C.A. Bancorp Provides Update on Strategic Review Process and Reminds Shareholders to Take No Action With Respect to Maxam's Hos

^{Published on 2010-01-11 04:10:14 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2010) - C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp" or the "Company") wishes to provide shareholders with an update on its previously announced strategic review process in response to the hostile take-over bid by Maxam Acquisition Corporation ("Maxam").

C.A. Bancorp's Board of Directors (the "Board") and Special Committee, together with the Company's management and financial and legal advisors, have been working to develop and evaluate a range of strategic alternatives to enhance value.

As part of that process, the Company is actively engaged in discussions with third parties, a number of which have submitted non-binding expressions of interest at values materially in excess of the value of Maxam's unsolicited bid.

"We are pleased with the interest by third parties considering a transaction with C.A. Bancorp," said Mr. Tim Unwin, Chairman of the Special Committee. "Indicative proposals from these parties demonstrate materially superior value over the Maxam offer. We remain committed to enhancing value for our shareholders and aim to do so through the continued execution of our strategy and the active consideration of potential alternatives."

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, including the status quo. Shareholders who may have tendered their shares to the Maxam offer can withdraw them.

The Board is diligently pursuing and evaluating a number of value-maximizing alternatives, which may include a transaction with a third party or the continued execution of C.A. Bancorp's business plan. The Company's strategic review process, including discussions with and due diligence activities undertaken by third parties, may require some time to conclude. There can be no assurance that any alternative transaction will result from the Company's strategic process.

Availability of the Directors' Circular

Shareholders are reminded to read the Directors' Circular in its entirety. The document is available free of charge on SEDAR at [ www.sedar.com ] and on C.A. Bancorp's website at [ www.cabancorp.com ]. Copies of the Directors' Circular have been mailed to all C.A. Bancorp shareholders.

For Investor Questions, Including How to Withdraw Shares from the Maxam Offer

Shareholders who have questions or who may have already tendered their shares to the Maxam offer and wish to withdraw them, 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.