(March 7 – 12:40 ET) – In his address to shareholders today, André Bérard, chairman and CEO of National Bank of Canada, stated that the bank is ready to take advantage of the changes that financial services reform legislation will bring.

He recognized however that the bank is facing one major challenge, the valuation gap that exists between the bank and its Canadian peers .

“Creating value is the National Bank’s raison d’être and primary goal,” Bérard stated, adding that the board had passed essential measures to give it the means to deal with any eventuality.

The shareholders rights plan, which had been adopted by the board on Dec.14, 2000, was approved by shareholders at today’s annual meeting.

Under the terms of this plan, National Bank has entered a subscription right for each common share outstanding at the close of business on March 6. The rights will trade with the common shares and will be represented by the common share certificates or an entry in the bank’s securities register.

Should a hostile bid for the bank emerge, each right would entitle the holder to purchase from the bank one common share upon payment of 50% of the closing price of the common shares on the Toronto Stock Exchange on the date that the bid was announced.
-IE Staff